Prices ease, will OPEC peck?

Oil traders are waiting for developments in Vienna where OPEC ministers are gathering for a Wednesday meeting that will decide whether or not to implement a one million barrels per day bpd cut in output from April 1.

Oil prices rose sharply after the decision to reduce production was announced on February 1. But prices eased last week, prompting some oil traders to predict that a lengthy bull run had ended. US crude hit a closing peak at over 13-year of over 38 two weeks ago.

8216;8216;The cartel is in something of an unenviable quandary no matter what it decides. If it does not cut, prices are bound to come off as the market has to give up some of the gains it has chalked up since Feb 10,8217;8217; said Edward Meir of brokers Man Financial.

8216;8216;Alternatively, if it does cut, prices could still go down if the market perceives that the cartel is unable or unwilling to enforce its cuts.8217;8217;

8216;8216;Basically, it8217;s all eyes on OPEC now,8217;8217; one oil trader in London said. 8216;8216;No one really wants to do anything until it8217;s clear what OPEC will do. But personally, I feel this market has hit a top.8221;