the Opec meeting
Iraq’s oil minister says it’s going a cut ahead of today’s Opec summit, according to Bloomberg. Also Russia is ready to cut, according to Iran.
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oil prices jumped immediately over two dollars to over to 50.1 per barrel after Iraq’s oil minister Jabbar al-Luaibi stated to Bloomberg that there will be agreement on a cut. It fell later back to around 50 dollars a barrel.
– There is unanimous agreement in the Opec, he said, according to Bloomberg before the summit in oljekartellet started Wednesday. He added that the size of the produksjonskuttet not been determined yet.
the oil market has for weeks been waiting in suspense on whether oljekartellet Opec to get in place an agreement to cut their collective oil production when the member countries meet in the austrian capital Vienna on Wednesday.
Russia “willing to cut”
– Russia is willing to cut oil production and to cooperate with Opec, says Iran’s oil minister Bijan Namdar Zanganeh in advance of the meeting, according to Bloomberg. He says this agreement came after Iran’s president Hassan Rouhani spoke with his Russian counterpart Vladimir Putin recently.
Opec must in the first instance, agree on how the benefits their cut before oljekartellet agree on how oil producers outside Opec, with Russia in the lead, will cut their production.
Optimistic
Oljekartellet, with Saudi Arabia and Iran in the tip, has for months negotiated for an agreement to cut kartellets total oil production to push oil prices up and reduce the profit in the market.
In advance of the meeting they spoke who were present oljeministrene with journalists about their prospects of oljetoppmøtet, and seemed unisont optimistic.
“We have not finalized the agreement, but we are optimistic,” says the iranian oljeministeren Bijan Zanganeh, according to the american news channel CNBC.
the Market responded to the optimism by sending oil prices up over two and a half dollars fatat on Wednesday morning, when the ministers started the meeting was the price of a barrel nordsjøolje for immediate delivery near 50 dollars a barrel.
– Much remains
We should make earnest of our desire to get on space Algae-agreement, ” says Saudi Arabia’s oil minister Ali al-Falih, and states that he hopes that oil producers outside of Opec should cut 600,000 barrels per day. He refers to a preliminary agreement that was negotiated when the Opec countries met in the Algerian capital earlier in the year.
The saudi oljeministeren is somewhat more measured in their comments than their seemingly more optimistic colleagues, but istemmer optimism related to the Russia-cuts.
We are approaching, but much remains to agree on when it comes to fairly distribute the produksjonskuttene. I hope we get it today, he says, according to the news service. He also adds that all kuttløsninger must include countries within and outside Opec.
– the Russians are willing to work with us. There are good chances for an Opec agreement, ” he says, and adds that it will take “all 2017 to get where we want”.
The thorny point
Within Opec characterizes the political opposition, negotiations about the produksjonskutt, and it is particularly Iran and Saudi Arabia which stands as the rake contradictions. The solution seems to be that Saudi Arabia accounts for the major cut in its oil production, while Iran be excluded from the cuts.
shi’ite Iran and sunnimuslimske Saudi Arabia has for many years been in intense conflict with each other. The two oil-rich countries, both founding members of Opec, have been enemies since the iranian revolution in 1979, and the conflict between the two countries has heated up in the last year.
– The difficult point is how the cuts should be allocated within Opec. I’m relatively optimistic, ” says Al-Falih, according to Bloomberg.
Not difficult
Furthermore, writes Bloomberg that Iraq’s oil minister states that the cut will apply in the six months ahead and be monitored by a committee. Also algeria’s oil minister says the country wants to cut its oil production.
Venezuelan oil minister says according to the news service that it “will not be difficult” for Opec countries to land a deal and that Nigeria, Libya and Iran will be except for the cut. Iran’s oil minister confirms that the country should be excluded from the cuts, reports Bloomberg.
Nigeria and Libya has seen its oil production fall dramatically in recent years as a result of political instability. Iran has on its side set its output muted in the years as a result of sanctions linked to its nuclear program. After the agreement to reduce the sanctions against Iran in exchange for to build down the country’s nuclear program were concluded in the last year have Iran’s oil production increased and the country has constantly rejected all of the claims to reduce the production again.
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