The Organization of the Petroleum Exporting Countries is expected to maintain or even possibly increase oil production levels Friday, a move that would maintain pressure on struggling U.S. oil companies.
The cartel is meeting in Vienna, Austria, on Friday, and Reuters reported it seems unlikely to cut production, which would have the effect of driving prices up. Instead, OPEC may even raise the ceiling for oil production by 1.5 million barrels per day.
Such a decision would have the effect of squeezing American oil companies even further. In the last year, American oil producers have been forced to lay off thousands of workers, and drilling sites across the country have ceased operations as the crude oil surplus grew.
The futures price of crude Brent oil dropped a dollar per barrel after the news of OPEC’s likely decision leaked out, according to multiple reports.
OPEC’s decision in Vienna could loom large in Congress as lawmakers consider a budget deal before Dec. 11.
For months, lawmakers from oil-producing states have sought to end the 40-year ban on crude oil exports and a repeal of the ban has been attached to a comprehensive energy bill that passed the House Thursday. It’s also passed the House as a standalone bill.
A repeal of the oil export ban is on Senate Majority Leader Mitch McConnell’s wish list for the budget deal that must come before a possible government shutdown on Dec. 11.
Those in favor of lifting the ban say it would help American oil producers by allowing them to ship their product to U.S. allies around the world. Selling to those countries would lessen the American oil glut, which would then allow for production to rise again, according to supporters.
The White House has stated President Obama could veto repealing the oil export ban.
