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Page added on October 29, 2016

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OPEC Officials Yet To Agree On How To Implement Supply Cut

Production

OPEC officials meeting in Vienna to work out the details of their plan to reduce oil production failed to reach agreement after hours of talks on Friday, amid objections by Iran which has been reluctant to even freeze its output, OPEC sources said.

The High Level Committee of experts will meet again in Vienna on Nov. 25 ahead of the next meeting of OPEC ministers on Nov. 30, to “finalise individual quotas”, one source said.

They will also meet as scheduled on Saturday with representatives of non-OPEC producers, which OPEC wants help from in curbing supplies.

“Yes, we continue tomorrow with non-OPEC,” one of the sources said. “(There was) no complete agreement today since Iran refuses to freeze production.”

“We didn’t finish all. We are looking to the next meeting on November 25 to finalise individual quotas,” another source said.

The meeting of the High Level Committee is comprised mainly of OPEC governors and national representatives – officials who report to their respective ministers.

Talks lasted just over 11 hours on Friday with Iran appearing to be the main sticking point.

“There is no agreement yet, all agree except Iran,” one OPEC source said, adding Iran was asking for an exemption.

The Organization of the Petroleum Exporting Countries had agreed last month in Algiers to reduce their production of crude oil to a range of 32.50 million to 33 million barrels per day, OPEC’s first output cut since 2008, in an effort to prop up prices.

But from the outset the proposed plan faced potential setbacks with Iraq wanting to be exempt from cuts and countries including Iran, Libya and Nigeria whose output has been hit by sanctions or conflict also wanting to raise their output.

“It is getting complicated,” a delegate said before the meeting began on Friday.

“Every day there is a new issue coming up.”

However, other OPEC officials including Secretary-General Mohammed Barkindo remained optimistic.

“Our deliberations today, and tomorrow with some non-OPEC producers, could very well have fundamental ramifications for the market, as well as for the medium to long term of the industry,” Barkindo said in a speech on the opening day of the two-day meeting, according to a text provided by OPEC.

The committee does not decide policy and will instead make recommendations to the next OPEC ministerial meeting on Nov. 30.

Iraq, OPEC’s second-biggest producer, said earlier this week that it would not cut output and should be exempted from any curbs as it needs funds to fight Islamic State.

Meanwhile Iran has insisted on its right to recover market share after Western sanctions were lifted in January.

Non-OPEC nations sending representatives to Saturday’s talks are Russia, Kazakhstan, Mexico, Oman, Azerbaijan, Brazil and Bolivia.

RIGZONE



6 Comments on "OPEC Officials Yet To Agree On How To Implement Supply Cut"

  1. joe on Sat, 29th Oct 2016 8:31 am 

    All the while, Saudi is eating up those cash reserves….

  2. Northwest Resident on Sat, 29th Oct 2016 1:30 pm 

    There will be no voluntary supply cut. Most likely, this whole propaganda campaign is aimed at proactively building an excuse to justify inevitable near-term production decreases. They just don’t want to admit — cannot admit — that peak oil is here right now and that we are on the downward slope to oblivion. Not until they’re ready, if ever.

  3. Survivalist on Sat, 29th Oct 2016 3:31 pm 

    In 2007 Pres Bush visited Saudi Arrabia and begged them to increase oil production so the price of oil would decrease. Now USA wants Saudi Arabia to decrease production so as to bring the price of oil up. This is called ‘restructuring the problem definition’. Now when Saudi Arabian production decreases due to peak and then declines it can be explained as a choice that they are making as per requested. It provides an opportunity to deny that the peak has occurred and the decreasing production isa choice. This will buy time. Once the world population realizes what is in store for them it will be chaos. Imagine how everybody would behave if they were told famine is just around the corner.

  4. Truth Has A Liberal Bias on Sun, 30th Oct 2016 12:09 am 

    US-Al Qaeda alliance

    https://consortiumnews.com/2016/10/29/the-de-facto-usal-qaeda-alliance/

  5. Truth Has A Liberal Bias on Sun, 30th Oct 2016 12:12 am 

    A great interview with Malcolm Nance- sniper/Arabist/spec ops re: Al Qaeda 5.0 AKA ISIS

    http://blogs.reuters.com/great-debate/2015/11/19/one-phrase-from-saudi-clerics-could-begin-the-end-of-islamic-state/

  6. kidneyok.tumblr.com on Mon, 31st Oct 2016 6:15 pm 

    KIDNEY DISEASE New Alternative Treatment Solutions Are Healing It – Dialysis Forget About
    Required? http://kidneyok.tumblr.com/post/69309674755/the-story-of-this-man-is-one-that-can-really-give

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