OPEC’s Pre-Vienna Meeting Yielded No Results

OPEC’s Pre-Vienna Meeting Yielded No Results

OPEC experts met late November, ahead of their schedule meeting in Vienna to discuss means to global market stability. Yet, they ended the meeting without agreeing on concrete details of a planned reduction in oil output. Iraq and Iran continued to express objections, and they agreed to refer the matter to an OPEC ministerial gathering on November 30, reported Reuters.

A proposed deal would trim production by 1.2mb/d from October levels, though it remains unclear whether the idea has the support needed for approval, as countries struggles to reach a consensus, according to Bloomberg. Iran suggested a deal whereby it freezes production at 3.975mb/d, or about 200,000b/d above its current output. In return, Saudi Arabia countered with a proposal for Iran to cap output at 3.707mb/d, roughly its current level. Algeria offered a compromising alternative that would see Iran freezing at 3.795mb/d.

As OPEC tries to resolve its own differences, the group is also asking other big producers to reduce output by as much as 600,000b/d. However, Russia’s Energy Minister, Alexander Novak, said that he has no plans to visit Vienna, but Russia was ready to talk with OPEC once the group reaches an internal consensus.

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