Source: CNBC

Oil is trading around $50 a barrel – a significant recovery from earlier this year when oil prices dropped below $30/barrel. Investors are looking forward to next month’s meeting of the Organization of the Petroleum Exporting Countries (OPEC) for signs of an output increase now that oil has reached $50. A likely fight for market share between key members Saudi Arabia and Iran is causing a concern for investors at this time.

“The bigger risk is that following the meeting, Saudis will increase production to meet rising summer domestic demand, to preserve market share in its oil wars with Iran and Iraq,” David Hufton, head of PVM Oil brokers, said.

OPEC will meet next week, June 2, to decide on production policies for the upcoming months.