GCC Members Seek to Revive Oil Output Deal

GCC Members Seek to Revive Oil Output Deal

Gulf OPEC members including Saudi Arabia are looking to revive the idea of coordinated oil-output action by major producers on next meeting, a senior OPEC source said to Reuters, but he added that Iran is not ready for any such pact. “The Gulf Cooperation Council [GCC] is looking for coordinated action at the meeting,” the source said, referring to a group combining OPEC’s biggest producer Saudi Arabia and its Gulf allies Qatar, Kuwait and the United Arab Emirates.

So far, Tehran has been the main stumbling block for the OPEC to agree on output policy over the past year as the country boosted supplies despite calls from other members for a production freeze. The country argues it should be allowed to raise production to levels seen before the imposition of now-ended Western sanctions over Iran’s nuclear programme.

On the other hand, Saudi Arabia effectively scuppered plans for a global production freeze – aimed at stabilising oil markets – in April. Furthermore, it said then that it would join the deal, which would also have involved non-OPEC Russia, only if Iran agreed to freeze output.

However, as The Wall Street Journal reported,  OPEC isn’t likely to take any coordinated action on crude-oil output at its next meeting , representatives said, and there is no specific proposal on production on the agenda.


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