Opec, non- Opec panel to discuss oil- output boost
If resolved, talks could lead to an easing of tensions within Opec
Dubai/ London, Sept. 7: An OPEC and non- OPEC technical committee will later this month discuss proposals for sharing out an oiloutput increase, sources familiar with the matter said, a tense topic for the producer group after it decided in June to ease supply curbs.
A panel called the Joint Technical Committee will on September 17 consider proposals on distributing the agreed output increase of 1 million barrels per day, the sources said. The discussion had earlier been planned for next Tuesday.
“The talks will look at various mechanisms” to reach the required production level, a source said.
If resolved, the talks could lead to an easing of tensions within the Organisation of the Petroleum Exporting Countries. Iran had been against the June decision, which came amid pressure from US President Donald Trump to reduce oil prices.
There are four proposals on how to distribute the increase, presented by Iran, Algeria, Russia and Venezuela, one of the sources said, suggesting agreement will not be straightforward.
One idea, to share it prorata among participating countries, is unlikely to be approved by Russia and Saudi Arabia since it would give them less than the supply boosts of 3,00,000 and 4,00,000 bpd that they respectively want, the source said.
Opec, Russia and other non- members agreed in June to return to 100 per cent compliance with oil output cuts that began in January 2017. Months of underproduction in Venezuela and elsewhere had pushed adherence above 160 per cent.
The June meeting concluded with a deep disagreement between Saudi Arabia and Iran.
Saudi Arabia said the decision implied a reallocation of extra production from countries unable to produce more to those, such as Riyadh, that can. Iran, facing a forced cut in its oil exports because of US sanctions, disagreed.
The proposals will be presented to ministers attending a meeting in Algeria on September 23, sources said.