Arab Today, arab today opec to keep oil gushing fails to agree ceiling
Last Updated : GMT 17:50:45
Arab Today, arab today
Arab Today, arab today

After a moderate recovery in the crude

OPEC to keep oil gushing, fails to agree ceiling

Arab Today, arab today

Arab Today, arab today OPEC to keep oil gushing, fails to agree ceiling

OPEC, which pumps around a third of the world's oil
Vienna - Arab Today

OPEC decided Thursday to keep oil gushing after a moderate recovery in the crude eased the pressure to limit output, with Saudi Arabia saying the cartel is "very satisfied" with the market.

A final statement from the Organization of the Petroleum Exporting Countries after a meeting in Vienna made clear that the 13-nation group had not set a new output target.

It said that since its last meeting in December, "crude oil prices have risen by more than 80 percent, supply and demand is converging and oil and producer stock levels in the OECD have recently shown moderation."

This was echoed by kingpin Saudi Arabia's energy minister, newly appointed by the kingdom's dynamic new deputy crown prince, expressing confidence that the recovery in the oil prices would continue. 

"Everybody is very satisfied with the market. The market is rebalancing as we speak," said Khaled al-Falih said at the start of the bi-annual gathering.

Traditionally OPEC, which pumps around a third of the world's oil, has cut production to boost falling prices.

But in the most recent drop, tumbling from over $100 in 2014 to close to $25 in January, OPEC -- driven by Riyadh -- has changed tack, keeping oil flowing to maintain market share and squeeze competitors.

It has taken some time -- straining even Saudi Arabia's finances, to say nothing of on-the-brink OPEC member Venezuela -- but the tactic now appears to be working at last. 

Non-OPEC output is falling and prices last week briefly broke above $50 for the first time in six months.

While oil prices fell after the OPEC meeting, they shot higher after US inventory data showed signs of stronger than expected demand.

In late afternoon London deals, Brent North Sea crude for August delivery gained 42 cents to $50.14 per barrel. 
New York's West Texas Intermediate (WTI) crude for July rose 24 cents to $49.25, compared with Wednesday's closing level.

Animosity between Saudi Arabia and Iran -- bitter regional OPEC rivals engaged in proxy conflicts in Syria and Yemen -- means that any agreement to cut output is highly unlikely in any case.

Since Iran's 2015 nuclear deal entered into force in January and sanctions were lifted, Tehran has aggressively ramped up output, and is unwilling to stop now.

"A doubling of exports of Iranian oil has had no negative impact on the market and has been absorbed well," Iranian Oil Minister Bijan Zanganeh said Wednesday.

A group production target of 30 million barrels per day -- in any case flouted, currently around 32 million bpd -- was abandoned at OPEC's last meeting in December.

On Thursday Zanganeh said that setting a collective OPEC ceiling "means nothing" without agreeing production quotas for members. 

"We're not now in a position to talk about putting a ceiling, because the strategy and our assessment of the strategy is working, the market is reacting very positively," said Suhail al-Mazrouei, United Arab Emirates oil minister.

- 'Don't care about prices' -

Saudi Arabia is undergoing change with the powerful young Deputy Crown Prince Mohammed bin Salman, 30, seeking to revamp the country's economy to reduce dependence on oil.

His "2030 Vision" includes a partial floatation of national oil giant Aramco and creating a gargantuan sovereign wealth fund. This week it pumped $3.5 billion into Uber.

This conflict between the Saudis and the Iranians -- soothed by the price recovery -- could return with a vengeance if oil prices dip again, however, for example on the back of a stronger US dollar.

This worries poorer OPEC members, not least Venezuela, racked by severe food shortages and inflation projected to hit 700 percent in 2016.

This is unlikely to sway the Saudis, however.

"We don't care about oil prices -- $30 or $70, they are all the same to us," Prince Salman said in an interview with Bloomberg published in April.

One thing which could perhaps smooth the waters was the appointment on Thursday of Nigeria's Mohammed Barkindo as new OPEC secretary general, replacing Abdalla El-Badri of Libya.

Source: AFP

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today opec to keep oil gushing fails to agree ceiling Arab Today, arab today opec to keep oil gushing fails to agree ceiling

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom,China plunges into biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom,China plunges into biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues

GMT 08:51 2017 Saturday ,25 February

Shaking off dieselgate, VW races back into profit

GMT 08:48 2017 Saturday ,25 February

France's Macron takes on critics over 'vague' programme

GMT 10:10 2017 Friday ,24 February

France's Macron gets boost, but election is wide open

GMT 12:38 2017 Thursday ,23 February

Lower fares hit Qantas first half profit

GMT 10:57 2017 Thursday ,23 February

Chief executive out at Paramount Pictures
View News in Arabic - Business: أخبار الأعمال
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Humans spark most US wildfires

GMT 14:58 2017 Tuesday ,28 February

Humans spark most US wildfires
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Final Phantom VII signals end of an era

GMT 14:31 2017 Tuesday ,28 February

Final Phantom VII signals end of an era
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday