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OPEC Splits Prevent Deal With Other Producers to Curb Supply

Posted by Chris Advincula on Oct 31, 2016 7:54:11 AM



(Oct 30 Bloomberg) OPEC's internal disagreements over how to implement oil-supply cuts agreed to last month prevented a deal to secure the cooperation of other major suppliers.

More than 18 hours of talks over two days in Vienna yielded little more than a promise that the world's largest oil producers would keep on talking. Discussions will continue in late November, just days before the Organization of Petroleum Exporting Countries is supposed to finalize the accord that lifted oil prices to one-year highs.

Non-OPEC nations ended talks with the group on Saturday without making any supply commitments, Brazil's Oil and Gas Secretary Marcio Felix said after the meeting. Brazil won't restrict its oil production, though it's willing as early as next year to host future OPEC conferences with the world's biggest producers, he said in a phone interview.

Azerbaijan's Energy Minister Natiq Aliyev said the outcome of the process hinges on Iran and Iraq, two nations that are more interested in increasing production than reducing it. While Saturday's meeting was a successful "first step," oil-producing nations need to continue dialog and "come up with real numbers" before cuts can begin, Kazakhstan's Deputy Minister Magzum Mirzagaliyev said in an interview after the meeting.

Risk of Failure

A deal wasn't possible because internal OPEC talks on Friday reached an impasse over the role of Iran and Iraq, both of which want to be exempt from any cuts. While non-member Oman said Saturday it was willing to cooperate in a supply deal, it couldn't commit to a specific output cut until OPEC had its own agreement.

Click on the link below to see the full story from Bloomberg: (by Grant Smith and Elena Mazneva)

OPEC Splits Prevent Deal With Other Producers to Curb Supply 





Topics: commodities, crude oil, West Texas Intermediate, Global Markets, OPEC


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