OPEC deal push sends Algeria, Venezuela ministers to Moscow

The preliminary deal has limited OPEC’s output to between 32.5 million bpd and 33 million bpd.

Non-OPEC oil production giant Russian Federation confirmed on Tuesday that it would not attend the OPEC gathering, but added that a meeting between the group and non-affiliated producers at a later stage was possible. Details of the agreement, made at the end of September, are expected to be finalized during OPEC’s upcoming meeting on November 30.

OPEC last reported that its 14 members produced a combined average of 33.6 million barrels per day, meaning a cut, not a freeze, would be necessary to implement the agreement. Some believe this won’t go far enough.

“The revival of Iran’s lost share in the oil market is the national will and demand of Iranian people”, Bijan Zanganeh, Iran’s oil minister reportedly told Iranian news agency Shana.

Oil prices edged higher on Monday, after falling as much as 2 per cent in early trading, as the market grappled over the shaky prospect of major producers being able to agree output cuts at a meeting on Wednesday aimed at reining in global oversupply.

Crude oil price fell significantly, recording a decline of 3.96% to 46.46 United States dollars per barrel.

A technical committee of OPEC delegates last week sent a proposal to the organization’s oil ministers, recommending that most members cut output by 4 to 5 percent from the October level estimated by independent sources. If OPEC’s present production level were maintained, this would remain the case until mid-2017.

Iran and Iraq are resisting pressure from Saudi Arabia to curtail oil production, making it hard for the group to reach a deal to limit output.

“I don’t know. Let’s see”, said the minister stressing the importance of a “fair deal” for all members.

Sanalla said the unrest in Libya, which has gripped the country since the fall of dictator Muammar Gaddafi in 2011, makes it impossible for Tripoli to contribute to the OPEC output cuts. The disagreements center on who should curb production and by how much to trim the oil glut, which has resulted in a more than 50 percent decrease in prices.

However, it would be hard to agree if political issues are raised during the meeting, said Zanganeh, expressing hope that oil will not be used to serve political purposes.

In the meantime, Boutarfa said that if OPEC members agree, oil prices will reach 50-60 US dollars per barrel next year.