Home Business News OPEC, others to discuss oil output hike next Monday

OPEC, others to discuss oil output hike next Monday

0

An Organisation of Petroleum Exporting Countries (OPEC) and non-OPEC technical committee will meet next Monday to discuss proposals for sharing the agreed-upon output increase of 1 million b/d.

The recommendations of the technical committee will be presented to oil producing countries’ ministers at their monitoring meeting scheduled to hold on Sept. 23 in Algeria.

Already, there are four suggestions on how to distribute the proposed increase. The proposals were presented by Iran, Algeria, Russia and Venezuela. Industry sources predict that agreement will not be straightforward at the meeting

For instance, the sources foresee that the idea of sharing the proposed increase in output on pro-rata among participating countries may not sail through as it does seem it will not favour Russia and Saudi Arabia since it would give them less than the supply boosts of 300,000 and 400,000 b/d that they respectively want.

It would be recalled that OPEC, Russia and other non-members agreed last June to return to 100 percent compliance with oil output cuts that began since January last year. The June meeting witnessed disagreement between Saudi Arabia and Iran over the decisions taken on oil output.

According to statistical data on oil output into the international market in recent months, Venezuela and other producers’ inability to meet their production quotas had pushed had pushed adherence rate by over 160 percent.

The OPEC’s crude oil production hit a 10-month high in August, as Iraq including Kurdistan produced at record levels even as Libya recovered from weeks of port blockades.

The total OPEC member-countries’ oil production totalled 32.89 million b/d last month, including 320,000 b/d output from Congo, which joined OPEC in June this year.