Quarterly Oil Market Update: All eyes on OPEC and the US

Currently, Brent oil is trading at around $55 per barrel, with little deviation from this level in the last two months. This stability in prices is mainly due to coordinated action by OPEC and some non-OPEC members, with January crude oil production data showing OPECs oil output was down, month-on-month, by 900 thousand barrels per day. Despite the relatively stable start to the year, oil price volatility is likely to re-emerge during 2017 as global oil markets face up to a rising risk of OPEC noncompliance to production cuts, upward revisions in US oil production, and policy initiatives from the new US administration.