“Political tensions will prevent cohesion, and individual members will continue to protect market share from resilient non-OPEC producers”, BMI Research said in a note to clients.
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Oil prices jumped over 1 per cent today, pushed by a reported draw in U.S. crude inventories and an oil service worker strike in Norway which hit output.
The strike in Norway is expected to impact output.
OPEC members are meeting in Algiers this month amid speculation that a deal to curb output could be reached.
Algeria’s Energy Minister Noureddine Bouterfa last week said there was a consensus among OPEC and non-OPEC members about the need to stabilize the oil market, and has been pushing for a price around $50 to $60 a barrel.
While talking about freezing the output helped to put a floor under oil prices during the last few months, the outcome of the Organization of the Petroleum Exporting Countries meeting in Algeria from September 26 to 28 seems more redundant by the day.
Light sweet crude futures on the Mercantile Exchange for October delivery were up 61 cents to $43.63 per barrel, while Brent crude for November on the ICE Futures in London increased 48 cents to $46.26 per barrel.
Without revealing details, Maduro said he hoped to make a firm announcement by the month’s end. OPEC members and Russian Federation failed to agree at a meeting in Doha in April to limit production after Iran declined to attend and Saudi Arabia refused to proceed without all of the OPEC states participating.
Oil prices fell on Tuesday after Venezuela said that global supplies needed to fall by 10 per cent in order to bring production down to consumption levels, and technical indicators also pointed to cheaper crude futures.
The International Energy Agency trimmed projections for global oil demand next year by 200,000 barrels a day to 97.3 million a day, the Paris-based group said in a report earlier this month.
“Given the number of false starts on the OPEC rumor mill, the Venezuelan president s comments should be taken with a grain or two of salt”, CMC Markets analyst Jasper Lawler said.
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Depending on discussions until then or even during the informal session, OPEC ministers, since all will be present, can transform the gathering into an extraordinary meeting, he said. About one or two million barrels per day is the excess supply flowing into the market and has been going into the stocks and inventories over the last two years.
