Reuters - Gulf Arab OPEC members led by Saudi Arabia will push for an increase in supplies at a meeting of the oil cartel this week in an effort to support flagging world economic growth by bringing crude prices back below $100 a barrel.
VIENNA (Reuters) - Gulf Arab OPEC members led by Saudi Arabia will push for an increase in supplies at a meeting of the oil cartel this week in an effort to support flagging world economic growth by bringing crude prices back below $100 a barrel.
Gulf Arab OPEC members led by Saudi Arabia will push for an increase in supplies at a meeting of the oil cartel this week in an effort to support flagging world economic growth by bringing crude prices back below $100 a barrel.
LONDON/NEW YORK — Saudi Arabia is quietly telling the oil market it would be comfortable with much lower oil prices for an extended period, a sharp shift in policy that may be aimed at slowing the expansion of rival producers including those in the U.S. shale patch.
Some OPEC members including Venezuela are clamoring for production cuts to push oil prices back up above US$100 a barrel.
In a crucial development today, Saudi Arabian Oil Minister Ali al-Naimi told reporters that “The GCC reached a consensus,” referring to the Gulf Cooperation Council which includes Saudi Arabia, Kuwait, Qatar, and the United Arab Emirates. “We are very confident that OPEC will have a unified position.”
According to Reuters’ sources, the GCC, led by Saudi Arabia, will push against slashing production.
VIENNA: Nearly a year after oil markets entered a deep downward spiral, unmoored from the $100-a-barrel mark that had anchored them for years, some OPEC members are publicly talking for the first time about a new "fair" price for their crude. Oil ministers from Iraq, Venezuela and Angola said in Vienna this week that a price of $75 or $80 a barrel - barely $10 above the going rate - could be just fine. Iraq's Adel Abdel Mahdi said it would be "equitable". Privately, one Gulf OPEC delegate also told Reuters he reckons crude may be trading around this level next year, once markets rebalance.
Who could have seen this coming? With oil prices holding at 4-year lows, heavily pressuring around half of US shale production economics, the "secret" US deal (see here and here) with Saudi Arabia to crush Russia via oil over-supply in a slumping demand world appears to be backfiring rapidly for John Kerry and his strategery team.
LONDON — Oil prices could plunge to $60 a barrel if OPEC does not agree a significant output cut when it meets in Vienna this week, market players say.
Brent crude futures have fallen 34% since June to touch a four-year low of $76.76 a barrel on Nov. 14, and could tumble further if OPEC does not agree to cut at least 1 million barrels per day (bpd), commodity fund managers say.
“The market would question the credibility of OPEC and its influence on global oil markets if there was no cut,” said Daniel Bathe, of Lupus alpha Commodity Invest Fund.
Oil traders should not lose too much sleep worrying about what OPEC, often unpredictable and quarrelsome in the past, will do when it meets next week.
The producer cartel, say delegates who attend meetings, is odds on to leave output policy unchanged. As a risk factor for oil markets, its May 31 gathering in Vienna barely features on traders’ radar.
In a recent survey by Bloomberg, out of 20 analysts, exactly 10 believe Organization of the Petroleum Exporting Countries (OPEC) will decide to cut oil production, while the other 10 think oil production will remain the same.
The survey result is perhaps a true reflection of the uncertainties that loom over tomorrow’s meeting in Vienna, Austria, where 12 of the world’s largest oil-producing nations are set to meet to decide on whether to cut oil production.
The recent crash in oil prices has set the stage for the most-anticipated OPEC meeting in years on Thursday. As oil-producing power brokers prepare to gather in Vienna, the Financial Post and Calgary Herald this week present Oil Pressure, a look at the forces buffeting, and buffeted by, the new oil world order. Today, the return of oil geopolitics.
By all accounts, Saudi oil minister Ali Al-Naimi was in a “good” place and “happy” during OPEC’s last meeting in June.