FREE IMAGES Iran’s oil output will be discussed next Thursday.
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Since the nuclear deal with Iran went public this week, the price of oil on the global market has been erratic.
“Next time, we would like to offer for discussion, as a second issue, the global situation with oil refining”, Novak added.
But OPEC, which has traditionally defended price levels by cutting output if needed, dramatically switched strategy last November when it opted to leave its production target unchanged.
The Organisation of the Petroleum Exporting Countries – whose 12 members including Iran pump one third of global oil – is mindful that Iranian oil could worsen a global supply glut and depress oil prices further.
Russian Federation is producing at a rate of 10.71 million barrels per day, and Saudi Arabia has had similarly high production around 10.6 million barrels per day. Benchmark U.S. crude dipped 54 cents Monday to settle at $52.20 a barrel on the New York Mercantile Exchange.
He also pointed out that Russian Federation and Saudi Arabia share the same positions on future oil prices and the inexpediency to artificially lower volumes of extraction.
“So it could be a contentious (Opec) meeting and there could be pressure for an emergency meeting before December”. “If Iran, Venezuela, Algeria and Libya – all of which need to pump more – enter into a dispute with the Gulf producers, then it could be the end for Opec”, he warned.
“The prices will be determined by the production costs of shale oil”, Novak said.
The OPEC said that the supply of oil from non-OPEC producers was expected to grow by only 300,000 bpd in 2016, down sharply from 860,000 bpd this year.
Oil is forecast to languish at an average of just above $62 per barrel next year, according to French bank Natixis.
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He said he did not expect a big impact on prices from additional oil volumes from Iran.
