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OPEC to push for non-member oil cuts

By on December 11, 2016

The OPEC cartel will seek Saturday to persuade other oil producers to lower production as part of a newly struck global pact to stem a crude glut and lift painfully low prices.

The Vienna meeting, which includes major producer Russia, aims to nail down details on implementing the accord reached late last month.

Analysts however remained divided over the gathering’s impact as doubts lingered regarding countries’ willingness to freeze output.

“We do not expect the outcome of this meeting to play a significant role in rebalancing the oil market,” Vienna-based analyst group JBC Energy said Friday.

The Organization of the Petroleum Exporting Countries cartel agreed on November 30 to lower its monthly output by 1.2 million barrels per day (bpd) to 32.5 million bpd as of January.

Under the deal, OPEC also wants oil-producing nations outside the cartel to lower their output by 600,000 barrels a day.

Moscow — the world’s largest oil producer along with OPEC kingpin Saudi Arabia — has already signalled it would provide half of that production cut in the first half of 2017.

This leaves the remaining 300,000 barrels a day to be divided between the other non-OPEC nations.

Oil prices climbed in Europe Friday amid hopes for a deal.

 

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