Saudis keen for consensus on OPEC production by November

The 15th International Energy Forum will be held in Algiers from September 26-28, during which OPEC will hold an informal meeting to discuss oil price and production. While the former OPEC president, who steered the group the last time it cut supply, said he’s confident there will be an accord, all but two of 23 analysts surveyed by Bloomberg this week predicted there won’t be a deal.

“We believe this informal meeting will definitely not lead to an oil production freeze, but would certainly set a platform for taking certain crucial decisions in the upcoming formal meeting in November”.

Oil prices fell yesterday, pulled down by a sell-off following two sessions of strong rises and on caution ahead of a gathering of Opec ministers next week in Algeria to discuss possible production cooperation to rein in global oversupply.

Saudi Arabia, which maintains huge influence in OPEC, is now running into economic difficulties after it opted to flood the market and drive out its rivals.

“Iraq’s oil policy aims at cooperating with the producers inside and outside OPEC to achieve the needed balance in supply and demand and the stability in the market”, he said in a statement released to the media.

The West Texas Intermediate (WTI) benchmark for USA crude futures fell $1.84, or 4%, to close at $44.48 a barrel Friday.

Market observers say a deal to freeze crude output across 14 OPEC members spanning Asia, the Middle East and the Americas is still unlikely.

The talks in Algeria are OPEC’s second attempt to reach an agreement on production curbs, after a failed effort in May.

Brent crude futures were slightly higher at Dollars 46.31 a barrel during early Asia trade on Monday after losing almost 4 percent in the previous session.

The split between Saudi Arabia – the world’s biggest oil exporter – and Iran scuppered the chances of a deal being agreed at the last Opec meeting in June.

Aldar Properties was the index’s only gainer, rising 0.3 per cent to Dh2.73.

OPEC Secretary General Mohammad Barkindo said a week ago that the meeting was for consultations only, not for a decision. That 11th-hour collapse was the result of Saudi Arabia’s insistence that Iran also freezes its output, which it refused to do given that it was just starting to revive exports after the lifting of Western sanctions. That said, 57% of those polled shared the view that Brent crude oil would average in the $50s next year.