“So, if you want to put a number on that, that would be the current production number”, he said. “Americans don’t have any ceiling, Russians don’t have any ceiling, why should OPEC have a ceiling?” The overproduction is likely to worsen next year as Iran plans to pump an additional 500,000 barrels a day within weeks of worldwide sanctions being lifted.
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Cartel members, meeting in Vienna, made no mention of a production target in their final communique.
Opec 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.
On December 2, two days before the Vienna meeting, Zanganeh sent a letter to the head of OPEC, urging member states of the bloc to respect a shared production ceiling of 30 million barrels a day.
On the Intercontinental Exchange (ICE), brent crude for January delivery wavered between $42.69 and $44.81 a barrel before closing at $43.02, down 0.82 or 1.86% on the day.
But before Iran returns to the market with its increased production level, the global oil market has to deal with OPEC’s increasing output, whether it has an official output ceiling or not.
Another factor behind Opec’s thinking is the wait to see how much further oil production will fall in the United States.
With oil prices hovering near a six-year low, cash-strapped countries including Venezuela, Ecuador and Algeria are pressuring Saudi Arabia to cut production.
The Saudis, the world’s largest oil exporters, have stuck to their one-year-old view that any output cuts won’t work unless big producers outside OPEC, including Russian Federation and Mexico, participate.
In a note to clients on Friday following OPEC’s latest production announcement, Goldman’s Damien Courvalin wrote that the oil market’s supply and demand balance won’t be restored until the fourth quarter of 2016 at the earliest.
Most ministers left the meeting without making comments.
Apart from that, the worldwide energy networking will widen the access, thus facilitating acceleration of technological transfer, business opportunities such oil supplies and products that are mutually beneficial, access to research and development and opportunities for Indonesias best sons and daughters to take active part in the global energy organizations.
Nigeria’s oil minister and President of the OPEC Conference Emmanuel Ibe Kachikwu at a press con …
This despite slowing growth in global oil demand, largely because of weaker economic output in China, the world’s biggest consumer of energy.
Iranian oil minister Bijan Zangeneh said Tehran would be prepared to discuss OPEC quotas or other action only when his country reached full output levels, when and if Western sanctions on the country are lifted next year.
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Saudi Arabia on Friday repeated the kingdom’s stance that it would be willing to cut as long as non-OPEC also reduces its output. Ministers may gather again before June if prices keep falling, he said. That involved raising the collective ceiling, excluding new member Indonesia, to 31.5 million bpd from the previous 30 million – effectively bringing it in line with real production numbers.
