The Ecuadorian Minister of Hydrocarbons, Carlos Pareja, told reporters that his country, a member of OPEC, supported the production of gel 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’.
After “consultations” informal in the morning in a large hotel in Doha, the Ministers present were received, the official agency Qna by the emir of Qatar, Sheikh Tamim bin Hamad Al-Khalifa. A meeting of ministers, shunned by Iran, to be held in the afternoon. Fifteen countries, most members of OPEC (OPEC) and led by Saudi Arabia, are represented in Doha where they consult with non-OPEC producers such as Russia.
But the differences between Iran and Saudi Arabia, the two great rivals in the Middle East, broke out even before the start of these discussions. “The Doha meeting is for those who want to participate in gel terms of production,” said Iranian Oil Minister Bijan Namdar Zanganeh. “Since it is not expected that Iran sign the plan, the presence of a representative of Iran at the meeting is not necessary,” he said.
“Iran will renounce in no way to its historical production quota,” said Mr. Zanganeh forcefully, referring to the level of production and export of the country before international sanctions against Tehran. Saturday, in an interview with Bloomberg, Deputy Crown Prince of Saudi Arabia, Mohammed bin Salman, reiterated that the kingdom does not freeze its crude unless Iran does the same. Saudi Arabia is represented in Doha by its Oil Minister Ali al-Nuaimi.
An agreement, brokered in February by Saudi, Russia, Qatar and Venezuela, aims to freeze production crude for January levels to curb the oversupply until demand resume in Q3 of 2016. Kamel al-Harami, Kuwaiti oil expert, believes that agreement Sunday on a gel production 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,” said Mr. Harami told AFP in Doha. According to OPEC, Iran’s production reached 3.3 million barrels per day (bpd) in March, against 2.9 million bpd in January, still below its level before the embargo (about 4 million bpd).
Together, the OPEC members pumped 32.25 million bpd in March, nearly a third for Saudi Arabia, against an average of 31.85 million bpd in 2015. Qatar, host, said that an “atmosphere of optimism” had spread on the eve of the meeting, while the acting Minister of Oil of Kuwait, Anas Saleh also said he was “optimistic”. Oil prices, however, ended sharply lower Friday, victims of renewed skepticism before the Doha meeting.
Analysts are divided on the results to be expected from the meeting, which might as well send the prices up or cause again collapse. Several experts exclude a significant impact on the oil market remained volatile despite the agreement of February. Similarly, the International Energy Agency (IEA) warned that a Doha deal would have a “limited impact” on offer.
Meanwhile, OPEC has indicated before the meeting, that oversupply could accelerate. The Organization has also revised down its growth forecast for world demand this year and could cut more. The fall of about 60% in crude since June 2014 was caused by oversupply, following a sharp increase in the production of unconventional oil, including oil from US shale, and the refusal by OPEC in November 2014 to cut production. Exporting countries have lost hundreds of billions of dollars and charged in budget deficits that led to austerity measures.
(With AFP)
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