A new draft agreement on the production of gel petroleum set to be debated Sunday by the countries involved in the Doha meeting includes a paragraph providing that all OPEC member states should work together with the decisions, Reuters said citing industry sources.
This project modification could be a major obstacle to the final conclusion of a binding agreement since Iran, OPEC member, has decided not to attend the Doha meeting and refuses to freeze production.
the informal “consultations” have started well in the morning in a large hotel in Doha, capital of Qatar, told the press a member of the Ecuadorian delegation. But the ministers’ meeting was delayed for several hours.
“The problem now is to lead to something that would exclude Iran and satisfy the Saudis do not be angry the Russia, “another source summary of the organization.
the project includes the average daily production per month does not exceed the level of January, according to a copy obtained by Reuters. The freeze would remain in effect until October 1, then the producers would meet again in October to Russia to assess progress in the implementation of a “gradual recovery in the oil market,” it is written in this document.
Meeting in Vienna in June
The Ecuadorian Minister of Hydrocarbons, Carlos Pareja, told reporters that his country , a member of OPEC, supported the draft agreement to stabilize the oil market and support prices, sealed by an oversupply. The Minister of Energy of Azerbaijan, Natig Aliyev, quoted by the Russian news agency RIA Novosti, for his part stated that the draft agreement provided for a production freeze “in its January levels, and (that) until ‘October’, without giving further details. The Ecuadorian minister reported that the project included “the establishment of a freeze control committee”.
Pareja warned that if no action were taken, ” enormous damage would affect the oil industry and there would be a significant surplus “in the market. “We are ready to take the first step and monitor the market to see the reaction to it (frost) at the next OPEC meeting,” he said.
The Organization will meet in June in Vienna.
differences
differences between Iran and Saudi Arabia, the two great rivals in the Middle East, broke out even before the start of these discussions.
Saturday, Crown Prince Deputy Saudi Mohammed bin Salman, responsible for oil policy, told Bloomberg that the kingdom could quickly increase production and that it would limit that if Iran accepted a gel.
from Meanwhile, Iranian oil Minister Bijan Zanganeh said that the other producer countries were to make the idea of returning to his country on the oil market. “If Iran freezes its oil production in February, it will mean that he can not benefit from the lifting of sanctions,” he said.
Kamel al-Harami, Kuwaiti oil expert, however, believes that agreement Sunday on a production freeze is still possible even without Iran. “Iran is unable to add more than 500,000 barrels per day to production by the end of the year.”
United States in the viewfinder?
the failure to reach agreement would leave the field open to a new battles for market share between producer countries, which could deal a blow to to stop the rise in oil prices.
“if there is no agreement today, Saudi Arabia does not only take in Iran. If there is no frost, it will directly affect the north American production, and this is perhaps what the Saudis want, “said Abhisek Deshpande, analyst at Natixis.
the hope of a concerted limitation of world supply has allowed Brent to rebound 60% from the low hit in January around 27 dollars, which after the fall he had lost more than 75% since peaking at $ 115 in mid-2014.
A concerted gel producing countries at Doha would, however, that limited impact on the global oil supply and it is unlikely that the market returns to balance a likely situation before 2017, said Thursday the international energy Agency (IEA).
Source agencies
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