OPEC Quotas: Staying Steady

On the eve of this Monday’s OPEC meeting, some speculation remains as to whether production quotas will officially change. Despite record crude prices, the past twelve months have seen steady quota levels and the results of this meeting are not expected to buck the trend. Changes in the political climates in these producing countries have recently proven to be far more influential on actual production than the official OPEC quota system. Revisions to quota levels today serve more as an expression of member countries’ sentiments regarding global crude oil demand rather than a pricing mechanism.