You are here: Home » Reuters » News
Business Standard

OPEC makes last-ditch bid to save oil deal as tensions grow

Reuters  |  VIENNA 

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - was trying on Monday to rescue a deal to limit output as tensions grew among the producer group and non-member Russia, with top exporter saying markets would rebalance even without an agreement.

experts started a in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30.

Meanwhile, the Algerian and Venezuelan ministers were to travel to Moscow on Monday and Tuesday in a final attempt to persuade to take part in cuts instead of merely freezing output, which has reached new highs in the past year.

In September, OPEC, which accounts for a third of global production, agreed to cap output at around 32.5-33.0 million barrels per day versus the current 33.64 million bpd to prop up prices, which have more than halved since mid-2014.

The on Nov. 30 was expected to rubber-stamp that deal, with and some other non-producers such as Azerbaijan and Kazakhstan also contributing.

But doubts emerged in recent weeks as OPEC's No.2 and 3 producers, Iraq and Iran, expressed reservations about the mechanics of output reductions and voiced concern about Russia's willingness to cut.

On Friday, cancelled an experts with non-producers scheduled for Nov. 28 after said the organisation needed to sort out its differences first.

Over the weekend, Saudi Energy Minister Khalid al-Falih said markets would rebalance even without an output-limiting pact. He had previously said Riyadh was keen for a deal.

"NOBODY KNOWS"

Doubts about OPEC's ability to deliver promised cuts sent Brent crude down 2 percent initially on Monday to less than $47 a barrel. Prices later recovered to trade up 1 percent after Iraq's minister said he remained optimistic. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

As experts turned up at the group's headquarters on Monday, one delegate who had previously stated that a deal would be done, said this time: "I am not sure."

Another delegate, when asked about the prospects for a deal, said: "Nobody knows yet".

Iraqi Minister Jabar Ali al-Luaibi, upon arrival in Vienna, declined to say whether Iraq was ready to cut output: "We are optimistic. We hope we (will) have agreement. We will cooperate with members to reach agreement acceptable to all."

ministers started arriving in Vienna on Sunday for the group's regular twice-yearly talks but Saudi Arabia's Falih was not expected to land before Tuesday evening, leaving little time for traditional pre-discussions with peers.

Iranian semi-official news agency MEHR published an editorial on Sunday accusing of declaring a new "war on prices" and reneging on its promises to limit output.

The tone contrasted with Iranian news agencies' more upbeat coverage of OPEC's informal in September in Algeria, when the initial deal was reached.

(Additional reporting by Ahmad Ghaddar and Vladimir Soldatkin; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

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

RECOMMENDED FOR YOU

OPEC makes last-ditch bid to save oil deal as tensions grow

VIENNA (Reuters) - OPEC was trying on Monday to rescue a deal to limit oil output as tensions grew among the producer group and non-OPEC member Russia, with top exporter Saudi Arabia saying markets would rebalance even without an agreement.

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - was trying on Monday to rescue a deal to limit output as tensions grew among the producer group and non-member Russia, with top exporter saying markets would rebalance even without an agreement.

experts started a in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30.

Meanwhile, the Algerian and Venezuelan ministers were to travel to Moscow on Monday and Tuesday in a final attempt to persuade to take part in cuts instead of merely freezing output, which has reached new highs in the past year.

In September, OPEC, which accounts for a third of global production, agreed to cap output at around 32.5-33.0 million barrels per day versus the current 33.64 million bpd to prop up prices, which have more than halved since mid-2014.

The on Nov. 30 was expected to rubber-stamp that deal, with and some other non-producers such as Azerbaijan and Kazakhstan also contributing.

But doubts emerged in recent weeks as OPEC's No.2 and 3 producers, Iraq and Iran, expressed reservations about the mechanics of output reductions and voiced concern about Russia's willingness to cut.

On Friday, cancelled an experts with non-producers scheduled for Nov. 28 after said the organisation needed to sort out its differences first.

Over the weekend, Saudi Energy Minister Khalid al-Falih said markets would rebalance even without an output-limiting pact. He had previously said Riyadh was keen for a deal.

"NOBODY KNOWS"

Doubts about OPEC's ability to deliver promised cuts sent Brent crude down 2 percent initially on Monday to less than $47 a barrel. Prices later recovered to trade up 1 percent after Iraq's minister said he remained optimistic. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

As experts turned up at the group's headquarters on Monday, one delegate who had previously stated that a deal would be done, said this time: "I am not sure."

Another delegate, when asked about the prospects for a deal, said: "Nobody knows yet".

Iraqi Minister Jabar Ali al-Luaibi, upon arrival in Vienna, declined to say whether Iraq was ready to cut output: "We are optimistic. We hope we (will) have agreement. We will cooperate with members to reach agreement acceptable to all."

ministers started arriving in Vienna on Sunday for the group's regular twice-yearly talks but Saudi Arabia's Falih was not expected to land before Tuesday evening, leaving little time for traditional pre-discussions with peers.

Iranian semi-official news agency MEHR published an editorial on Sunday accusing of declaring a new "war on prices" and reneging on its promises to limit output.

The tone contrasted with Iranian news agencies' more upbeat coverage of OPEC's informal in September in Algeria, when the initial deal was reached.

(Additional reporting by Ahmad Ghaddar and Vladimir Soldatkin; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

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

image
Business Standard
177 22

OPEC makes last-ditch bid to save oil deal as tensions grow

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - was trying on Monday to rescue a deal to limit output as tensions grew among the producer group and non-member Russia, with top exporter saying markets would rebalance even without an agreement.

experts started a in Vienna at 0900 GMT and were due to make recommendations to their ministers on how exactly the Organization of the Petroleum Exporting Countries should reduce production when it meets on Nov. 30.

Meanwhile, the Algerian and Venezuelan ministers were to travel to Moscow on Monday and Tuesday in a final attempt to persuade to take part in cuts instead of merely freezing output, which has reached new highs in the past year.

In September, OPEC, which accounts for a third of global production, agreed to cap output at around 32.5-33.0 million barrels per day versus the current 33.64 million bpd to prop up prices, which have more than halved since mid-2014.

The on Nov. 30 was expected to rubber-stamp that deal, with and some other non-producers such as Azerbaijan and Kazakhstan also contributing.

But doubts emerged in recent weeks as OPEC's No.2 and 3 producers, Iraq and Iran, expressed reservations about the mechanics of output reductions and voiced concern about Russia's willingness to cut.

On Friday, cancelled an experts with non-producers scheduled for Nov. 28 after said the organisation needed to sort out its differences first.

Over the weekend, Saudi Energy Minister Khalid al-Falih said markets would rebalance even without an output-limiting pact. He had previously said Riyadh was keen for a deal.

"NOBODY KNOWS"

Doubts about OPEC's ability to deliver promised cuts sent Brent crude down 2 percent initially on Monday to less than $47 a barrel. Prices later recovered to trade up 1 percent after Iraq's minister said he remained optimistic. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

As experts turned up at the group's headquarters on Monday, one delegate who had previously stated that a deal would be done, said this time: "I am not sure."

Another delegate, when asked about the prospects for a deal, said: "Nobody knows yet".

Iraqi Minister Jabar Ali al-Luaibi, upon arrival in Vienna, declined to say whether Iraq was ready to cut output: "We are optimistic. We hope we (will) have agreement. We will cooperate with members to reach agreement acceptable to all."

ministers started arriving in Vienna on Sunday for the group's regular twice-yearly talks but Saudi Arabia's Falih was not expected to land before Tuesday evening, leaving little time for traditional pre-discussions with peers.

Iranian semi-official news agency MEHR published an editorial on Sunday accusing of declaring a new "war on prices" and reneging on its promises to limit output.

The tone contrasted with Iranian news agencies' more upbeat coverage of OPEC's informal in September in Algeria, when the initial deal was reached.

(Additional reporting by Ahmad Ghaddar and Vladimir Soldatkin; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

(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