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Saudi Arabia is pumping record amounts of oil, and Iran is resuming production faster than expected — a strong sign neither is likely to easily entertain the idea of an OPEC deal to control production.
OPEC this week said it would hold an informal meeting on the sidelines of an Algerian energy conference in late September, and some members — mostly Venezuela — have been pushing for talks on a new pricing mechanism. Chatter about a possible OPEC deal at that meeting sent oil prices higher this week, but they were in sharp retreat Wednesday on reports of higher U.S. oil stockpiles and on news that Saudi Arabia's production rose to a record 10.67 million barrels a day in July.
"I'm skeptical that we're going to see anything out of OPEC. I don't see anything out of Saudi. Their silence is rather telling," said Greg Priddy, director of global energy with Eurasia Group.
Saudi Arabia, the largest OPEC exporter, would have to be part of any plan to change the OPEC strategy of letting the market set prices. That strategy, master-minded by Saudi, was adopted by the Organization of the Petroleum Exporting Countries in November 2014. The policy preceded another big downdraft in prices.
meeting, and RBC analysts believe oil had been oversold and may have found a new bottom, thanks to that chatter. West Texas Intermediate crude futures dipped into bear market territory briefly last week when they fell below $40 a barrel, viewed as a key psychological level.
Saudi Arabia and Iran were at the center of disagreement that scuttled a previous OPEC effort to freeze production last April, and both are seen as key to any future deal. Saudi Arabia has said it will not agree to any limitations on production unless all producers agree. Iran, meanwhile, had refused to be limited in any way, as it was in the process of returning barrels to the market after sanctions against it were lifted.
Iranian Oil Minister Bijan Namdar Zanganeh was quoted Wednesday by Fars as saying Iran's oil production was at 3.85 million barrels a day, according to wire reports. The U.S. Energy Information Administration had estimated that Iran would not be back to that level until 2017.
Meanwhile, Venezuela President Nicolas Maduro said he spoke to Saudi Arabia's king about boosting oil prices and is reaching out to the heads of state of other producing nations about boosting oil prices.
"He just came across as very desperate," said Priddy. Venezuela has been in disarray politically and economically, and its oil production has suffered as a result. Low prices have given it no ability to maintain or improve its oil infrastructure. Maduro said OPEC should try to return oil prices to the $70 per barrel level, according to wire reports.
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- See more at: https://livepmtv.blogspot.com/2016/08/saudi-arabia-iran-pump-at-high-levels.html#sthash.pv8B07nF.dpufOPEC this week said it would hold an informal meeting on the sidelines of an Algerian energy conference in late September, and some members — mostly Venezuela — have been pushing for talks on a new pricing mechanism. Chatter about a possible OPEC deal at that meeting sent oil prices higher this week, but they were in sharp retreat Wednesday on reports of higher U.S. oil stockpiles and on news that Saudi Arabia's production rose to a record 10.67 million barrels a day in July.
"I'm skeptical that we're going to see anything out of OPEC. I don't see anything out of Saudi. Their silence is rather telling," said Greg Priddy, director of global energy with Eurasia Group.
Saudi Arabia, the largest OPEC exporter, would have to be part of any plan to change the OPEC strategy of letting the market set prices. That strategy, master-minded by Saudi, was adopted by the Organization of the Petroleum Exporting Countries in November 2014. The policy preceded another big downdraft in prices.
meeting, and RBC analysts believe oil had been oversold and may have found a new bottom, thanks to that chatter. West Texas Intermediate crude futures dipped into bear market territory briefly last week when they fell below $40 a barrel, viewed as a key psychological level.
Saudi Arabia and Iran were at the center of disagreement that scuttled a previous OPEC effort to freeze production last April, and both are seen as key to any future deal. Saudi Arabia has said it will not agree to any limitations on production unless all producers agree. Iran, meanwhile, had refused to be limited in any way, as it was in the process of returning barrels to the market after sanctions against it were lifted.
Iranian Oil Minister Bijan Namdar Zanganeh was quoted Wednesday by Fars as saying Iran's oil production was at 3.85 million barrels a day, according to wire reports. The U.S. Energy Information Administration had estimated that Iran would not be back to that level until 2017.
Meanwhile, Venezuela President Nicolas Maduro said he spoke to Saudi Arabia's king about boosting oil prices and is reaching out to the heads of state of other producing nations about boosting oil prices.
"He just came across as very desperate," said Priddy. Venezuela has been in disarray politically and economically, and its oil production has suffered as a result. Low prices have given it no ability to maintain or improve its oil infrastructure. Maduro said OPEC should try to return oil prices to the $70 per barrel level, according to wire reports.
References:
Disclaimer: This Site provide only information about latest news and updates. This site only contains links and embeds TV channels from 3rd party sites Which are freely available on Internet. We are not affiliated in any way with the broadcasted channels nor responsible for their content. All content is copyright of their respective owners. if you have any query visit for information Privacy Policy
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