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OPEC Sees Oil Prices Well Below $100/bbl Over Next Decade (OIL) (USO)

May 11, 2015 11:53 AM EDT

Oil prices are seeing some pressure Monday following commentary from the Organization of the Petroleum Exporting Countries (OPEC) which indicates that the commodity won't see prices at $100 per barrel again for at least the next decade.

The WSJ, citing a recent report from the consortium, said OPEC expects oil to trade around $76 per barrel by 2025 under its most optimistic scenario.

While OPEC has typically cut output in the past as crude prices have plunged, the group decided against that strategy last year as American shale production reached record levels. The group is aiming to retain market share while also pushing out competitors of oil that is expensive to produce.

OPEC might move to reinstate production quotas, a practice it abandoned a few years ago. Under a recently submitted draft, quotas could kick back in if OPEC's share of the global market falls below 32 percent. The quotas would allow the poorest members of OPEC to produce more, though there weren't any specifications of how much each country would be allowed.

Traders are keeping an eye on iPath Dow Jones-Goldman Sachs Crude Oil Fund (NYSE: OIL) and United States Oil Fund (NYSE: USO) today.



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