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As Oil Producers Meet, Agreement Looks Strained

As Oil Producers Meet, Agreement Looks StrainedAs Oil Producers Meet, Agreement Looks Strained

When oil producers meet Monday, their alliance will look frayed, showing just how tough their goal of stabilizing the world oil market has been, analysts say.

There is much focus on the meeting of the five-member Joint Ministerial Monitoring Committee, set up to oversee compliance of the deal struck by OPEC, Russia and others as an effort to boost world oil prices, CNBC reported.

Analysts say the committee will likely recommend maintaining the policy of holding back output at current levels, but efforts will be made to bring Nigeria and Libya into the framework because of the recent unexpected return of their production.

"Clearly, OPEC has a lot of cracks," said Francisco Blanch, head of commodities and derivatives strategy at Bank of America Merrill Lynch. The organization, he said “is certainly under a fair amount of pressure from members that feel they shouldn't be cutting production here. I think the meeting is going to be more routine than anything else. There will be some recommendations."

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