Oil prices ease in cautious trading ahead of OPEC meeting

06 December, 2018, 13:48 | Author: Eric Barnett
  • Iran Asking OPEC to Use March April Oil Output Levels as Baseline for New Cuts – Source

Russia President Vladimir Putin will decide on the country's contribution to global oil output.

The Organization of Petroleum Exporting Countries and its allies are desperate to shore up oil prices after a slump of more than $20 a barrel since October.

"We're looking for a sufficient cut to balance the market, equally distributed between countries", Al-Falih told reporters ahead of an OPEC meeting in the Austrian capital.

OPEC meets on Thursday in Vienna, followed by talks with allies such as Russian Federation on Friday. "I am optimistic. There will be a deal, but it is unclear how much Opec and how much non-Opec will contribute".

The group could eventually agree to remove about 1 million barrels a day, about 1 percent of global output, from the market, Al Rumhy said.

Bank of America Merrill Lynch said in its 2019 economic outlook, published on Tuesday, that "most major economies are likely to see decelerating activity", although it added that "a steady stream of monetary and fiscal stimulus measures" was expected to stem the slowdown.

Moscow has shown willingness to cooperate with OPEC to cut oil production.

Saudi Arabia, OPEC's de facto leader, has pressed for steep output reductions but has faced pressure from Trump to keep oil flows steady to keep prices low, rather than reduce inventory.


The OPEC meeting comes at a time when the oil market is near the bottom of its worst price plunge since the 2008 financial crisis.

The Trump administration has sought to maintain oil production to avoid a run-up in prices as it tightens sanctions preventing Iran from exporting crude.

"OPEC is an independent organization, not a part of the US Department of Energy to take orders from Washington", said Zanganeh, who has left Tehran for Vienna to attend the OPEC summit on Thursday and Friday.

Led by Saudi Arabia, OPEC's crude oil production PRODN-TOTAL has risen by 4.1 per cent since mid-2018, to 33.31 million barrels per day (bpd).

Iran is suffering both as a result of lower prices and a decline in its oil exports because of the USA sanctions.

However, when oil producers realized the sanctions fell far short of what had been expected, fears of oversupply followed.

Iranian oil minister has lashed out at USA special representative for Iran Brian Hook over his "meddlesome" meetings with members of the Organization of Petroleum Exporting Countries in Vienna, asserting that OPEC is an independent body that does not take orders from the US. "The World does not want to see, or need, higher oil prices!" said Trump, who has in the past repeatedly accused the cartel of keeping prices artificially high.

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