Oil pro­duc­ers dis­cuss out­put cuts

The Myanmar Times - - International Business -

OPEC of­fi­cials held talks with Rus­sia and other non-car­tel mem­bersin Vienna to de­bate how to im­ple­ment a plan aimed at cut­ting oil out­put to re­duce a global sup­ply glut and bol­ster prices.

“The recovery process has taken far too long and we can­not risk de­lay­ing the ad­just­ment any fur­ther,” said Sanusi Barkindo, the sec­re­tary gen­eral of the Or­gan­i­sa­tion of the Petroleum Ex­port­ing Coun­tries, in his open­ing re­marks on October 29.

“There­fore, we should be call­ing for max­i­mum com­mit­ment from all OPEC and non-OPEC coun­tries in this re­gard and we should ex­pect no less as this is our com­mit­ment, not only to our mem­ber coun­tries but to the global com­mu­nity.”

Moscow’s del­e­ga­tion de­clined to com­ment be­fore the meet­ing. But OPEC and Rus­sia – the world’s top oil pro­ducer along with Saudi Ara­bia – have held sev­eral meet­ings re­cently to tighten co­op­er­a­tion to ease price volatil­ity.

Other non-OPEC mem­bers at­tend­ing the tech­ni­cal com­mit­tee meet­ing were del­e­ga­tions from Brazil, Kaza­khstan, Mex­ico, Oman and Azer­bai­jan.

“We will dis­cuss the recog­nised po­si­tions of coun­tries, first of all the OPEC coun­tries,” Azer­bai­jan’s En­ergy Min­is­ter Natig Aliyev told re­porters in Vienna.

OPEC mem­bers, led by oil king­pin Saudi Ara­bia, had al­ready met to try and ham­mer out de­tails of the plan ahead of a sum­mit late next month.

Par­tic­i­pants’ opin­ions from the week­end gath­er­ing “will be in­cluded in a re­port to be con­sid­ered by min­is­ters” at the Novem­ber 30 meet­ing, OPEC said.

In a sur­prise move, the car­tel in Septem­ber agreed a deal to trim pro­duc­tion by up to 750,000 bar­rels per day to be­tween 32.5 and 33 mil­lions per day. The an­nounce­ment of the first such move since 2008 sent prices surg­ing.

Pro­duc­tion has out­paced de­mand over the past two years, with the re­sult­ing sup­ply glut ham­mer­ing prices from highs of more than US$100 a bar­rel in June 2014 to near 13-year lows be­low $30 in Fe­bru­ary this year.

Prices are cur­rently hov­er­ing around $50 a bar­rel, still too low for oil rev­enue de­pen­dent na­tions.

But ob­sta­cles re­main to the new ac­cord as some OPEC mem­bers refuse to de­crease their out­put.

Iran was ex­empted from the cuts as it is still ramp­ing up pro­duc­tion de­pleted by years of crip­pling Western eco­nomic sanc­tions lifted only in Jan­uary.

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.