OPEC tries to salvage deal on production cuts; Saudis say it isn’t essential
OPEC ministers flew to Moscow and officials in Vienna started another round of talks in an effort to salvage an agreement on production cuts, just as Saudi Arabia said a deal might not be necessary.
With only two days to go before ministers from the Organization of Petroleum Exporting Countries try to finalize the first production decrease in eight years, the foundations for a deal look shaky. A final round of diplomacy focused on internal divisions over how to share the cuts and Russian resistance to reducing supply, which already forced the cancellation of crucial talks with non-OPEC suppliers.
Khalid Al-Falih, the Saudi oil minister, for the first time on Sunday floated the possibility of leaving Vienna without an agreement. Without an OPEC cut, the International Energy Agency predicts that the oil market will remain in surplus for a fourth year in 2017, which could cause prices to fall.