OPEC meeting close but not many optimistic on agreement

Iran and Iraq are resisting pressure from Saudi Arabia to curtail oil production, making it hard for the Organization of the Petroleum Exporting Countries to reach a global output-limiting deal when it meets on Wednesday.

With sanctions lifted this year as a result of a nuclear agreement, Iran is looking to regain its market share within OPEC while pushing the Saudis to give up gains it says were made while Tehran was sanctioned. Benchmark U.S. crude added 33 cents to $45.56 a barrel in electronic trading on the New York Mercantile Exchange.

Brent crude futures jumped 8 percent to more than Dollars 50 a barrel on hopes Riyadh had finally reached a compromise with Iran after insisting in recent weeks that Tehran fully participate in any cut.

But many investors are sceptical the OPEC members will agree to a deal. Members hope that global production can be cut to somewhere between 32.5 and 33 million barrels a day from 33.8 million in October. An Algerian energy source said OPEC ministers so far supported the proposal.

The downturn in prices and lost revenue is forcing the Saudi government to put in place unpopular measures until OPEC and other producers can agree on a production cut.

In the event of an Opec failure, the International Energy Agency predicts that the oil market will remain in surplus for a fourth year in 2017, which could cause prices to fall.

In the United States, analysts polled by Reuters ahead of weekly inventory reports from the American Petroleum Institute (API) industry group later on Tuesday and the U.S. Energy Information Administration (EIA) on Wednesday estimated, on average, that crude stocks increased about 600,000 barrels in the week to November 25.

Volunteers help feed thousands on Thanksgiving
Volunteers from the community came together to host a free Thanksgiving meal this afternoon at the Farmington Civic Center. While many of us spent Thanksgiving at home with our families, some families spent their day feeding others in need.

One of the most sensitive meetings of OPEC has just kicked off today on Wednesday in Austrian capital with the participation of ministers from 14 Member countries and their accompanying delegations.

The deal promises to revive the tattered finances of countries from Venezuela to Libya and restore flagging confidence in the producer bloc that controls 40 percent of the world's oil. However, if the organization can reach an agreement, analysts see oil prices jumping to $50 a barrel or greater.

The argument between Iraq and Saudi Arabia mainly focuses on whether Baghdad should use its own output estimates to limit production or rely on lower figures from OPEC's experts. Market Watch reported Tyler Richey, co-editor of The 7:00's Report, as saying.

Here are three possible consequences in the event that OPEC disagree with the oil production limit.

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This week, the Saudi oil minister appeared to be preparing for a post-meeting collapse by claiming that the market will rebalance, even without an output accord.

A source told Reuters that delegates were now discussing a bigger than expected cut in production of 1.4 million barrels per day (bpd).


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