Market Currents: OPEC deal still in the balance

The minister, who spoke to media yesterday at the headquarters of Aramco, also said the country was upbeat about crude oil demand next year, and in particular, demand for Saudi oil.

Arthur Berman, an independent US geological consultant is sure there are still chances for the OPEC agreement on oil production cut, but its impact on oil prices will depend on the volume of cut.

The oil glut was sparked when Saudi Arabia began to oversupply the market, in order to drive out United States shale oil companies from the market. It also disputes with Opec the level of its current output.

They made no comment as they emerged from their meeting.

This is not Algeria's narrative, nor is it Venezuela's, or many other OPEC members. Other members such as Nigeria and Libya are not going to be subjected to any cuts. In addition, OPEC doesn't have the authority to make members comply with their production assignments.

If OPEC agreed a production cut to 32.50 million bpd, crude prices would likely rise to the low $50s a barrel, Goldman said.

He added that with all these factors coming into play, "Something's got to give here, and the recipe for Saudi Arabia and Iran to come to the table and put something together is getting more hard; we should all prepare for big oil price gyrations in the next few days".

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They have two wins against current top-25 teams . "It's an honor to play in this game", defensive back Gareon Conley said. Has the gap closed? "I don't know if I've ever considered a gap", he said, adding: "And if there is, it doesn't matter".

Saudi Arabia and Iran have been bitter rivals for years. "If there is a deal, the question for the markets will be whether it is a strong deal or a weak deal, and this will be determined by the level of detail announced by OPEC". Any gathering would be unlikely to produce a credible agreement without Saudi Arabia.

On Saturday, Iran said it was in negotiations for an exemption from lowering its output, which is the third highest in the OPEC cartel of 14 countries behind Saudi Arabia and Iraq.

Iraqi Oil Minister Jabbar Al-Luaibi told reporters as he arrived in Vienna that he was optimistic OPEC can reach an agreement acceptable to all members. Such a move would help shore up oil prices, which have plunged in a world awash in oil, but has been hampered by disagreement over who should assume responsibility.

Meanwhile, oil ministers from Algeria and Venezuela were to travel to Moscow on today, ahead of Wednesday's meeting, in attempt to convince Russian Federation to be involved in curbing rather than simply freezing output.

By Sunday, Saudi Arabia's oil minister Khalid al-Falih said that the oil markets will reach a balance in 2017 even if OPEC did not cut output, a remarkable statement that seems to be an attempt to lay the rhetorical groundwork to limit the fallout from a failed meeting this week.

On Friday, OPEC canceled an experts meeting with non-OPEC producers scheduled for Monday after Saudi Arabia said the organization needed to sort out its differences first. It's unclear whether the minister has changed his mind about the merits of an agreement, or is trying to boost his negotiating position with Iran and Iraq.


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