Tencent Securities News according to the US financial media CNBC, OPEC (OPEC) will hold a crucial meeting on Friday, and the de facto leader of the organization, Saudi Arabia, is now facing a dilemma. It is difficult to convince some of OPEC's large oil-producing countries that it is necessary to increase crude oil production.
The oil cartel, which dominates the Middle East, will not decide on its production policy until later this week, but the meeting to be held by OPEC and other oil-producing countries in Vienna, Austria, has become one of the most controversial in years.
Saudi Arabia and Russia, non-Opec's largest producer, are trying to push Opec members to relax supply controls against a backdrop of increasing pressure from US President Donald Trump, who has publicly complained that Opec is responsible for the recent surge in crude oil prices to multi-year highs.
But Zanganeh, Iran's oil minister, said in an interview on Tuesday that OPEC members were likely to not be able to reach any agreement at the Vienna meeting on the way forward for the production limit policy, which has been in place for 18 months. In the interview, Zanganeh also accused Trump of using crude oil as a political "weapon" and said the Trump administration's sanctions on Iran and Venezuela had led to trouble in the energy market.
The deputy energy ministers of Saudi Arabia and Russia-which appear to be replacing Faleh, the Saudi energy minister, and Alexander Novak, the Russian energy minister-spoke on Wednesday morning local time in Vienna, calling on Opec and other crude oil exporters to continue to cooperate.
"this opening statement seems to clearly indicate the intention of the two major oil producers to respond to consumer concerns and to increase market supply. the key question now is what the two energy ministers missing in battle will do today to bridge their differences with the 'resistance'." Herima Helima Croft, global head of commodities strategy at Royal Bank of Canada Capital Markets (RBC Capital Markets), said on Wednesday.
Russia has previously proposed that OPEC and non-OPEC producers increase crude oil production by 1.5 million barrels a day. If this proposal is implemented, it will in effect mean that the existing plan to cut production by 1.8 million b / d will be largely destroyed, which will help the crude oil market rebalance and push up oil prices.
At the same time, Saudi Arabia seems interested in increasing production by only 500000 barrels to 600000 barrels a day. To be exact, it is not unusual for oil-producing countries to show "maximism" before a high-risk meeting. (nebula)