You are here: Home » PTI Stories » National » News
Business Standard

OPEC discusses output cut, sending prices higher

AFP  |  Vienna 

The OPEC cartel held tense talks today to try to agree its first output cut in eight years, sending prices soaring on hopes it will defy gloomy expectations.

Brent North Sea crude for January delivery jumped USD 3.83 to USD 50.21, the first time it has risen above USD 50 in a month. West Texas Intermediate won USD 3.59 to USD 48.82 per barrel, the highest level in a week.



As OPEC ministers began their meeting, Khaled al-Falih, energy minister of the cartel's biggest producer Saudi Arabia, sounded an upbeat note.

"We don't know (if a deal will be reached)," he said. "We will find out during the meeting. I think the sentiment generally is optimistic and positive."

In comments likely directed at Iraq and regional rival Iran, more reticent about reducing the flow of crude, Falih said that cuts have to be shared around OPEC "in an equitable way".

Iraq's Minister Jabbar al-Luaibi said he was "very optimistic we're going to come with very fruitful results... There will be a cut, yes, definitely," Bloomberg News reported.

In September the cartel agreed in principle to lower production to 32.5-33.0 million bpd, meaning a cut of between 600,000 and 1.1 million barrels per day (bpd).

Falih said he was aiming for the cartel to reduce its output to 32.5 million bpd, while he maintained that non-OPEC producers should limit their production by 600,000 barrels a day.

"It will mean that we take a big cut and a big hit from our current production and from our forecasts for 2017," he said.

The cartel's cut in output would be aimed at reducing the massive supply glut that has depressed prices over the past two years.

But finalising the agreement has proven difficult, with keen to increase output to pre-sanctions levels and Iraq short of money to fight Islamic State extremists.

has suggested it freeze production at 3.975 million bpd, or about 200,000 barrels a day above current output, Bloomberg reported Monday.

countered with a proposal for to cap output at 3.707 million.

While he stopped short of conceding would freeze or cut its production, Iranian Minister Bijan Namdar Zanganeh said his delegation was looking at "another framework".

"I am optimistic," he said.

However, should the ministers fail to agree a deal, experts expect prices to head south, perhaps to USD 40 or even USD 30.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

OPEC discusses output cut, sending prices higher

The OPEC oil cartel held tense talks today to try to agree its first output cut in eight years, sending oil prices soaring on hopes it will defy gloomy expectations. Brent North Sea crude for January delivery jumped USD 3.83 to USD 50.21, the first time it has risen above USD 50 in a month. West Texas Intermediate won USD 3.59 to USD 48.82 per barrel, the highest level in a week. As OPEC ministers began their meeting, Khaled al-Falih, energy minister of the cartel's biggest producer Saudi Arabia, sounded an upbeat note. "We don't know (if a deal will be reached)," he said. "We will find out during the meeting. I think the sentiment generally is optimistic and positive." In comments likely directed at Iraq and regional rival Iran, more reticent about reducing the flow of crude, Falih said that cuts have to be shared around OPEC "in an equitable way". Iraq's Oil Minister Jabbar al-Luaibi said he was "very optimistic we're going to come with very fruitful results... There will be a ... The OPEC cartel held tense talks today to try to agree its first output cut in eight years, sending prices soaring on hopes it will defy gloomy expectations.

Brent North Sea crude for January delivery jumped USD 3.83 to USD 50.21, the first time it has risen above USD 50 in a month. West Texas Intermediate won USD 3.59 to USD 48.82 per barrel, the highest level in a week.

As OPEC ministers began their meeting, Khaled al-Falih, energy minister of the cartel's biggest producer Saudi Arabia, sounded an upbeat note.

"We don't know (if a deal will be reached)," he said. "We will find out during the meeting. I think the sentiment generally is optimistic and positive."

In comments likely directed at Iraq and regional rival Iran, more reticent about reducing the flow of crude, Falih said that cuts have to be shared around OPEC "in an equitable way".

Iraq's Minister Jabbar al-Luaibi said he was "very optimistic we're going to come with very fruitful results... There will be a cut, yes, definitely," Bloomberg News reported.

In September the cartel agreed in principle to lower production to 32.5-33.0 million bpd, meaning a cut of between 600,000 and 1.1 million barrels per day (bpd).

Falih said he was aiming for the cartel to reduce its output to 32.5 million bpd, while he maintained that non-OPEC producers should limit their production by 600,000 barrels a day.

"It will mean that we take a big cut and a big hit from our current production and from our forecasts for 2017," he said.

The cartel's cut in output would be aimed at reducing the massive supply glut that has depressed prices over the past two years.

But finalising the agreement has proven difficult, with keen to increase output to pre-sanctions levels and Iraq short of money to fight Islamic State extremists.

has suggested it freeze production at 3.975 million bpd, or about 200,000 barrels a day above current output, Bloomberg reported Monday.

countered with a proposal for to cap output at 3.707 million.

While he stopped short of conceding would freeze or cut its production, Iranian Minister Bijan Namdar Zanganeh said his delegation was looking at "another framework".

"I am optimistic," he said.

However, should the ministers fail to agree a deal, experts expect prices to head south, perhaps to USD 40 or even USD 30.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

OPEC discusses output cut, sending prices higher

The OPEC cartel held tense talks today to try to agree its first output cut in eight years, sending prices soaring on hopes it will defy gloomy expectations.

Brent North Sea crude for January delivery jumped USD 3.83 to USD 50.21, the first time it has risen above USD 50 in a month. West Texas Intermediate won USD 3.59 to USD 48.82 per barrel, the highest level in a week.

As OPEC ministers began their meeting, Khaled al-Falih, energy minister of the cartel's biggest producer Saudi Arabia, sounded an upbeat note.

"We don't know (if a deal will be reached)," he said. "We will find out during the meeting. I think the sentiment generally is optimistic and positive."

In comments likely directed at Iraq and regional rival Iran, more reticent about reducing the flow of crude, Falih said that cuts have to be shared around OPEC "in an equitable way".

Iraq's Minister Jabbar al-Luaibi said he was "very optimistic we're going to come with very fruitful results... There will be a cut, yes, definitely," Bloomberg News reported.

In September the cartel agreed in principle to lower production to 32.5-33.0 million bpd, meaning a cut of between 600,000 and 1.1 million barrels per day (bpd).

Falih said he was aiming for the cartel to reduce its output to 32.5 million bpd, while he maintained that non-OPEC producers should limit their production by 600,000 barrels a day.

"It will mean that we take a big cut and a big hit from our current production and from our forecasts for 2017," he said.

The cartel's cut in output would be aimed at reducing the massive supply glut that has depressed prices over the past two years.

But finalising the agreement has proven difficult, with keen to increase output to pre-sanctions levels and Iraq short of money to fight Islamic State extremists.

has suggested it freeze production at 3.975 million bpd, or about 200,000 barrels a day above current output, Bloomberg reported Monday.

countered with a proposal for to cap output at 3.707 million.

While he stopped short of conceding would freeze or cut its production, Iranian Minister Bijan Namdar Zanganeh said his delegation was looking at "another framework".

"I am optimistic," he said.

However, should the ministers fail to agree a deal, experts expect prices to head south, perhaps to USD 40 or even USD 30.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard