Arab Today, arab today opec struggles to find deal on curbing oil supply glut
Last Updated : GMT 09:21:12
Arab Today, arab today
Arab Today, arab today

OPEC struggles to find deal on curbing oil supply glut

Arab Today, arab today

Arab Today, arab today OPEC struggles to find deal on curbing oil supply glut

Despite oil prices plunging by more than 60% in 18 months
Vienna - AFP

Divided OPEC ministers struggled to strike an agreement here Thursday on tackling an oil supply glut, with Iran insisting that it plans to hike its own production early next year.
Going into Friday's meeting of the Organization of the Petroleum Exporting Countries, oil ministers said no deal had been reached on whether to cut the cartel's oil output amid slumping crude prices.

"Nothing is decided, we are still discussing" among ourselves, Iraq's oil minister Adil Abd Al-Mahdi told reporters after an informal gathering of OPEC members in Vienna.

Markets expect OPEC -- whose 12 member nations from the Middle East, Africa and Latin America pump out about one third of the world's oil -- to leave its daily oil output ceiling at 30 million barrels at Friday's meeting.

Nevertheless, it may still reach a last-minute deal to trim production in a bid to support prices and in turn producers' revenues.

According to a survey by Bloomberg, OPEC production in November rose to 32.1 million barrels per day -- more than 2.0 million about its target.

OPEC kingpin Saudi Arabia and other Gulf state members are defying calls to cut output despite tumbling oil prices -- in a year-long strategy of attempting to preserve market share and fend off competition from oil extracted from North American shale rock.

Outside of OPEC, Russia alone pumped out 10.7 million barrels of oil a day in November, while on Thursday it again insisted that it would not be cutting back its own output to help the cartel.
OPEC's over-production has meanwhile caused friction within the organization, with poorer members such as Venezuela suffering badly from a collapse in income and demanding a cut to the cartel's overall ceiling.

- Iran hike -

Should OPEC surprise markets and agree to a reduction, Iran still plans to pump out additional crude from the beginning of 2016.

The Islamic republic's oil minister on Thursday said Iran would not bow to pressure and avoid increasing its production following the lifting of sanctions that had been imposed due to its disputed nuclear programme.

"We don't accept any discussion about the increase of Iranian production after lifting the sanctions," Iran's Oil Minister Bijan Zanganeh told reporters on arriving in the Austrian capital.

"It's our right" to pump out more crude, he added.

Zanganeh said the aim was to first increase output by half a million barrels a day in early 2016, eventually rising to one million barrels extra that would bring its daily total to around 3.8 million.

A global oversupply in crude has contributed heavily to oil prices plunging by more than 60 percent in about 18 months.

On Thursday, New York prices rebounded from heavy falls suffered a day earlier to reach around $40 a barrel -- which compared with more than $100 in June last year.

"The price of oil has rebounded from five-year lows (Thursday) after a report indicated Saudi Arabia said it would back output cuts if they were supported by non-OPEC countries," said Jasper Lawler, analyst at traders CMC Markets.

"The Saudi's slight concession makes a cut at Friday’s meeting very unlikely since Russia, the biggest non-OPEC oil producer is not yet on board, but does raise the possibility of it happening next year."

The price situation could meanwhile worsen next year, when growth in global demand for crude slows as the allure of cheap oil fades, the International Energy Agency said last month.

Demand is being impacted in part by slowing economic output in China, the world's biggest consumer of energy -- and by a strong dollar.

Also on Friday, OPEC is set to approve Indonesia's return to the organisation following a six-year absence that had been triggered by southeast Asia's largest economy becoming a net importer of oil.

Its return is seen as a way for the resource-rich country to access cheaper oil supplies as local demand soars while domestic production falls.

 

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 struggles to find deal on curbing oil supply glut Arab Today, arab today opec struggles to find deal on curbing oil supply glut

 



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 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
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
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
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 Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
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 Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

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 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

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 14:04 2017 Friday ,24 February

Messi visit will contribute in 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