OPEC moves toward raising oil supply as Iran softens positions

OPEC moves toward raising oil supply as Iran softens positions

OPEC moves toward raising oil supply as Iran softens positions

Russian Federation and Saudi Arabia agreed to increase outflow by around 1.5 million barrels a day to steady the market as U.S. sanctions on Iran and political instability in Venezuela are expected to affect global production.

Saudi Energy Minister Khalid al-Falih has signalled a compromise was in the works as a big hike in production was "politically unacceptable" to some members.

The Organization of the Petroleum Exporting Countries is meeting in Vienna together with non-OPEC oil producers to discuss output policy.

After sitting down with several counterparts, Iranian Minister Bijan Namdar Zanganeh said he was optimistic about the outcome of the OPEC meeting, a marked contrast to comments on Tuesday when he said a deal was unlikely.

Falling production in Venezuela and Libya, as well as the risk of lower output from Iran as a result of USA sanctions, have all increased market worries of a supply shortage.

But unexpected outages in Venezuela, Libya and Angola have effectively brought supply cuts to around 2.8 million bpd.in recent months.

28 on top 50 list
The restaurant , farm, and inn in Healdsburg, Calif.is run by married couple Katina and Kyle Connaughton. El Celler de Can Roca is based in Girona, Spain, while Mirazur in Menton, France.

Iran, OPEC's third-largest producer, has so far been the main barrier to a deal as it called on OPEC to reject pressure from U.S. President Donald Trump to pump more oil.

Brent oil prices were up 1.8 per cent on Friday.

The convoluted plan shows the difficulty Saudi Arabia has in bridging the gap between the competing interests of different members.

If the existing deal is retained and Saudi Arabia felt there was a need to add more oil, Riyadh could still increase production unilaterally, as it did after a meeting in June 2011 ended with no decision.

After almost two years of relative unity, the talks in Vienna this week have found Opec divided. "OPEC is not part of the Department of Energy of the United States".

Falih has warned the world could face a supply deficit of up to 1.8 million bpd.in the second half of 2018 and that OPEC's responsibility was to address consumers' worries.

Reuniting Families Separated at the Border Won’t Be Easy
REUTERS/Kevin LamarqueFirst lady Melania Trump boards the plane as she departs Joint Base Andrews on her way to Texas on June 21. The words are spelled out in white, graffiti-style lettering across the back of the jacket , which retailed for $39 at Zara .

Riyadh has said it is ready "to mitigate the effects of any supply shortages" from U.S. sanctions on Iran's oil.

More important to Saudi Arabia than extra petrodollars is containing Iran, its arch-nemesis.

Zanganeh said he would leave Vienna on Friday even before OPEC holds talks with non-OPEC producers the next day, but efforts were underway on Wednesday to convince Iran to participate in a deal.

Falih also said the real increase would be smaller than the nominal gain of 1 million bpd., meaning a compromise with Iran remained possible.

"OPEC is listening to consumers", Bob Dudley, the chief executive of BP Plc, said on the sidelines of the OPEC conference in Vienna. Other OPEC-members, including Iran, have opposed this, resulting in a flurry of backdoor diplomacy ahead of the meeting, which starts on Friday.

Melania Trump's office defends 'don't care' jacket
She said she speaks to her sons once or twice a week and they express "fear, distress, no understanding of what the future holds". First Lady Melania Trump's wardrobe choice caused quite a stir on Twitter .

Related news