Iran against Saudis heading OPEC

Oil prices fell on Friday after sources said OPEC had agreed to roll over its policy of maintaining crude production in order to retain market share and raise its output ceiling.Brent crude futures were last down 47 cents on the day at $43.37 barrel by 1459 GMT, compared with around $44.69 shortly before the decision came out. Change in output requires returning to the former set and then the new set will be defined, Asali affirmed.

“It is likely there will be some knee-jerk reaction to prices post the OPEC meeting”, Vyanne Lai of National Australia Bank said, adding that some of the bigger producers may be forced to cut output to make room for increasing production from Iran.

PARIS The head of the oil consumers’ watchdog group said on Thursday that he believed top exporter Saudi Arabia would “act responsibly” in the market, citing its reputation in helping balance global supplies.

Right now, OPEC is targeting total output of 30 million barrels per day and the cartel isn’t expected to cut its production target despite prices that are down about 50% from this point past year.

OPEC looked on track to maintain the status quo after member states clashed over oil production policy at an unusual informal gathering before the group’s official meeting in Vienna on Friday.

The other country objected by Saudis is Iraq, as after the 2003 war on the country, the new government of Iraq holds that they have to be given an exception out of the quota system. A Saudi oil source told Reuters the report was “baseless” but declined to elaborate. He added that he expected no change in OPEC’s output policies at the meeting on December 4.

Due to disagreements among OPEC nations for the past one year, analysts reportedly said oil prices could continue to head lower after Friday’s meeting winds down.

Oil prices rose in volatile trading Friday as traders positioned themselves ahead of the meeting. Yet, Zanganeh said Tehran would only consider a cap on its own production once it has reached pre-sanctions’ levels.

Nevertheless, the president said OPEC expects the global economy will grow by 3.4 percent next year, up from the 3.1 percent rate for 2015.

“I think it (the Saudi idea) is a pushing back against the idea of “lower for longer” prices”, said Paul Horsnall from Standard Chartered.

“He said Saudi Arabia will keep firm in its strategy of opposing any cut that is not previously coordinated with non-OPEC, obviously meaning Russian Federation”. Iraqi Oil Minister Adel Abdel Mahdi said his country was sticking to its current production plans after enjoying a significant rise in output this year. OPEC watchers said the divisions make it more likely the group will reaffirm its current production ceiling of 30 million barrels a day today. The two had last cooperated nearly 15 years ago to cut output and prop up the prices following the 1998 financial crisis.