In New York, a barrel of West Texas Intermediate crude for October delivery finished down US$1.54 (RM6.30) at US$43.16.
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The globe’s major oil producers have been unable to strike a deal on freezing output due mainly to a dispute between Saudi Arabia and Iran over Tehran’s desire to boost levels after the lifting of sanctions. “I am confident that everyone understands that”.
While OPEC members, with some major oil producers like Russian Federation, are preparing to hold a meeting on “common actions” for supporting market prices in Algeria in late September, the cartel’s Secretary-General Mohammed Barkindo is going to visit Iran the next week to encourage the country to help balance the global oil market.
“I would very much like to hope that every participant of this market that’s interested in maintaining stable and fair global energy prices will in the end make the necessary decision”, Putin told Bloomberg.
On the other hand, the global extra oil production has been continuing since 2014 and the glut wouldn’t be cleared by late 2017, even if demand-supply balance in markets starts today. “If Prince Salman and I talk on this subject, I will of course lay out our position again: we believe that it (an output freeze) is the right decision for global energy”. Prince bin Salman “is a very reliable partner with whom you can reach agreements, and can be certain that those agreements will be honored”, he said.
Putin’s claim put a “bit of spark” in oil prices even though the dollar fell today, Coombs said.
On September 26-28, representatives of 73 member states of the International Energy Forum (IEF) are set to meet in the Algerian capital to discuss oil-related issues.
Earlier, Iran refused to join the oil freeze plan in Qatar meeting in February 2016.
“This is another strong sign that the odds of a production freeze are going up”, Phil Flynn, senior market analyst at Price Futures Group in Chicago, said by telephone. A cap on production would be positive, Saudi Arabia’s Energy Minister Khalid Al-Falih said in an interview last week, though he ruled out an output cut.
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During his interview with Bloomberg, Putin said it was unfair to expect Iran put a ceiling on their output just as they were emerging from decades of worldwide isolation. But members such as Iran and Iraq show no signs of slowing output and Russian Federation suggested yesterday it may not act either.
