Opec seen backing Saudi plan to keep supplies up

Paris

WHEN Saudi Arabia argues next week that the Organization of Petroleum Exporting Countries (Opec) should keep up production to fight the rise in US shale oil levels, prices will be on its side.

Crude plunged for eight of nine weeks prior to the group's November gathering, when the kingdom faced down opposition from the majority of fellow members, who advocated output reductions to tackle a global glut. With oil companies around the world cutting investment, US output peaking and prices up, Saudi Arabia's strategy will be extended at Opec's semi-annual meeting on June 5, say Societe Generale SA and Bank of America Corp.