EghtesadOnline: The path to implementing OPEC’s Algiers agreement to cut production is taking shape and the outcome of a meeting of oil producers in Vienna Friday and Saturday could have a significant impact on the market, according to the group’s top official.
According to Bloomberg, members of the Organization of Petroleum Exporting Countries need to “forge ahead together” and finalize the details of last month’s supply deal in the Algerian capital, said Secretary-General Mohammed Barkindo. He was speaking at the start of a meeting in Vienna to discuss how to share production cuts between members, several of whom areseeking exemptions. Non-OPEC producers including Brazil and Russia will join the talks on Saturday.
“Our deliberations today –- and tomorrow with some non-OPEC producers –- could very well have fundamental ramifications for the market, as well as for the medium to long term of the industry,” Barkindo said in a speech posted on the group’s website. “OPEC and non-OPEC must now come together and take coordinated and timely action for the common good of all.”
OPEC agreed on Sept. 28 to reduce output to a range of 32.5 million to 33 million barrels a day, compared with about 33.4 million in September. The accord helped push oil prices to a 15-month high above $50 a barrel earlier this month, although they have subsequently fallen amid doubts the group will follow through on its pledge. The group needs to figure out how to complete the deal by it’s Nov. 30 ministerial meeting in Vienna.
Barkindo said he just returned from Baghdad for talks to “solidify the consensus” with Iraq, which has said it shouldn’t have to make cuts because of its war against Islamic State.