One of the most sensitive meetings of OPEC has just kicked off today on Wednesday in Austrian capital with the participation of ministers from 14 Member countries and their accompanying delegations.
Reviewing the current status of the global oil market and taking decisions on the agreement reached in Algeria is on the agenda on today’s meeting. Under the preliminary agreement of Algeria reached on Sep. 28, the level of oil production will be limited to 32.5 – 33 million barrels per day, with the exclusion if Iran, Libya and Nigeria.
Iran has stressed that it should be allowed to continue increasing production as its exports recovered from nuclear-related sanctions that were lifted in January following the signing of the JCPOA.
The general atmosphere in Vienna and the remarks made by the participating ministers indicate their resolve for implementing the agreements made earlier in Algeria.
Last night following his meeting with Iranian Energy Minister Bijan Namdar Zanganeh at Kempinski Hotel in Vienna, Algerian counterpart Noureddine Boutarfa said he held a good meeting with Iranian minister, stressing his optimism for the outcome of Wednesday’s OPEC meeting.
Zangeneh had also maintained upon his arrival at Vienna Airport that ‘with an economic mindset dominating the OPEC ministerial meeting, we will arrive at a conclusion very quickly, but if they are going to let politics decide for the meeting, it will be very difficult to reach an agreement.”
Zanganeh was also quoted to have said after a breakfast meeting with other ministers in the city on Wednesday that “Iran won’t freeze production, but there is another arrangement.”
Analysts predict that if OPEC member states could reach a consensus on Algeria’s agreement today, oil prices would go up to 50-55 dollars, otherwise it will drop to less than $40.
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