• News
  • Business

OPEC members complaining, says Nigeria is overproducing

OPEC members complaining, says Nigeria is overproducing

Saudi Arabia's energy minister triggered the sell-off after he said a cut of 1 million barrels per day would be enough for OPEC and other major exporters.

Saudi energy minister Khalid al-Falih, OPEC's de-facto leader, has in recent weeks travelled to Libya and Nigeria to press them on the exemptions, though no public commitments have been announced. Whether to exempt Iran from making any cuts was one sticking point in the meeting, said a delegate.

Iraqi minister Thamir Abbas Al Ghadhban said deliberations would continue on Friday.

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.

Oil prices have extended losses as US President Donald Trump once again tried to dampen OPEC's efforts to tackle falling oil prices amid market expectations on further output cut.

OPEC members are meeting in Vienna to discuss ways to raise global oil prices.

The move would mean reducing production by more than 1 million bpd.

"If everybody is not willing to join and contribute equally, we will wait until they are". "I think that's the fair and equitable solution", he added.

May: Brexit deal to allow trade ties with any country
But her spokesman declined to confirm or deny reports that Number 10 is considering a possible TV debate with Jeremy Corbyn. It would open the door to more division and more uncertainty, with all the risks that will entail", she said.

Some energy analysts questioned whether a reduction of 1 million barrels per day is adequate to balance supply and demand in 2019, especially considering that key producers including Saudi Arabia, Russia and Iraq have been increasing output.

OPEC, along with its non-OPEC allies led by Russian Federation, earlier this year decided on increasing their respective production levels, in a bid to cap crude oil prices and bring balance to the market.

OPEC ministers reacted to Trump's intervention by telling him not to interfere.

"OPEC is an independent organization, not a part of the US Department of Energy to take orders from Washington", said Zangeneh on Wednesday.

Otherwise, he added, the U.S. official has adopted an unprofessional, naïve, and meddlesome approach.

Possibly complicating any Opec decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. Given the economic sanctions being reimposed by the US, Tehran doesn't intend to join any agreement for cutting production, the country's oil minister Bijan Namdar Zanganeh said. "It is still under discussion", one delegate said.

But OPEC and its partners, who account for more than half of the world's oil output, are planning to throttle production, which could lead to rising oil prices. A cut of 1 million barrels would be the minimum to support the market, and anything less could see the price of oil fall another $10 a barrel, according to Neil Wilson, chief market analyst at Markets.com. "How OPEC communicates this to the market may be just as important as what gets done".

The cartel along with Russian Federation had subsequently increased production, with Saudi Arabia and Russian Federation reporting record production levels.

Leave Your Comment

Leave Your Comment


Latest News

Breaking News



Recommended

Guardiola's Man City no longer vulnerable to Madrid and Barca's market muscle

Riyad Mahrez will be used often over the busy Christmas schedule, making it tough to determine how Guardiola will rotate his men. Leicester recorded their first home win in the league since September with a comfortable 2-0 victory over Watford .

Kensington Palace responds to Kate and Meghan feud rumours

His job was to gift the queen a gold coin to mark her Golden Jubilee. She told the Telegraph: "I've recently gone vegan".

EPL: Liverpool's Origi sinks Everton with freak late goal

I did immediately afterwards to Marco Silva; I didn't want to be disrespectful but I couldn't stop myself. It's not an assist, but if you guys register it, obviously I'll take it.

Diplomats struggle for agreement on G-20 summit statement

China calls the United States protectionist and has resisted what it views as attempts to intimidate it. The Group of 20 brings together leaders of 19 of the world's most industrialised nations plus the EU.

NASA Reveals 9 Commercial Partners for Lunar Missions

Even Bridenstine said that while NASA wants the companies to succeed, the space agency is certain some of the efforts will fail. NASA plans to have astronauts orbiting the moon again by 2023, with a landing a few years later.

Trump Wants GM To Reimburse America For The Bailout?

White House press secretary Sarah Huckabee Sanders did not elaborate as to what cuts could be enacted. Earlier this week, GM announced GM plans to close up to five plants by the end of the year.

Bipartisan leaders of Senate Intelligence Committee respond to Michael Cohen's plea deal

That investigation has since expanded into Trump's business dealings about which Cohen would have critical information. In August, Cohen pleaded guilty to multiple counts of campaign finance violations, tax evasion and bank fraud.

Luke Shaw says Manchester United need thick skin with Jose Mourinho

Meanwhile Mourinho said he was prepared to walk to Old Trafford if traffic problems again hampered United's preparations before a home Champions League tie.

Browns’ Baker Mayfield denies Hue Jackson of a hug

Mayfield responded to the ESPN analyst's comments on Instagram. "Good try though buddy", Mayfield wrote. Jackson spent just over two seasons as the Browns' head coach before being fired at the end of October.

Watch NASA's InSight land on Mars tomorrow starting at 2PM ET

Last week the space agency announced that it has selected the location where its Mars 2020 Rover will land on the Red Planet. Onboard the vessel are a number of intricate instruments that NASA hopes will help uncover answers to Mars mysteries.