OPEC secretary general Abdullah al-Badri waits for the start of a meeting of OPEC oil ministers in Vienna, Austria, December 4, 2015.  REUTERS/Heinz-Peter Bader

OPEC fails to agree production ceiling after Iran pledges to boost output

Commentary, News
OPEC secretary general Abdullah al-Badri waits for the start of a meeting of OPEC oil ministers in Vienna, Austria, December 4, 2015.  REUTERS/Heinz-Peter Bader
OPEC secretary general Abdullah al-Badri waits for the start of a meeting of OPEC oil ministers in Vienna, Austria, December 4, 2015. REUTERS/Heinz-Peter Bader

OPEC members failed to agree an oil production ceiling on Friday at a meeting that ended in acrimony, after Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions.

A final statement was issued with no mention of a new production ceiling, apparently allowing member countries to continue pumping oil at current rates into a market that has been oversupplied.

OPEC’s secretary general Abdullah al-Badri said the body could not agree on any figures because it could not predict how much oil Iran would add to the market next year, as sanctions are withdrawn under a deal reached six months ago with world powers over its nuclear program.

Most ministers left the meeting without making a comment. Iranian oil minister Bijan Zangeneh had said before the meeting that Tehran would be prepared to discuss action only when his country reached full output levels, if and when Western sanctions are lifted.

Saudi oil minister Ali al-Naimi earlier had said he hoped growing global demand could absorb an expected jump in Iranian production next year: “Everyone is welcome to go into‎ the market”.

Iran has repeatedly said it would boost production by at least 1 million barrels per day when sanctions are lifted. Without curbs elsewhere, this would add to a global glut, as the world is currently consuming up to 2 million bpd less than it is producing.

(Additional reporting by Vladimir Soldatkin in Vienna, Shadia Nusralla and Marianna Parraga in Houston; Writing by Dmitry Zhdannikov; Editing by Peter Graff)

Read this article in its original format at Reuters.com


MrTopStep Group
http://mrtopstep.com

Questions: info@mrtopstep.com

Follow Us On Facebook and Twitter For More Intra-Day Market Updates!
https://www.facebook.com/mrtopstep
https://twitter.com/MrTopStep (@MrTopStep)

Dont Forget To Subscribe To Our YouTube Channel!
Sign Up Here: http://www.youtube.com/mrtopstepgroup

facebooktwittergoogle_plusredditlinkedintumblrmail

Leave a Reply