Member countries of the Organization of Petroleum Exporting Countries (OPEC) are meeting this Friday in Vienna to discuss the organization’s policies especially the low hydrocarbon prices but a change is not expected as they continue to disagree over the approach to adopt.
An informal meeting between oil ministers, organized by Saudi Arabia in Vienna on Thursday ended without any common position.
Energy Intelligence claimed that Saudi Arabia proposed during the informal meeting that OPEC countries cut oil output by 1million barrel but wants the non-members to adopt the same measure.
The report was termed “baseless” by a Saudi source stressing that there was no such proposal and that Riyadh will stick to its strategy of not accepting cuts in production output unless non-OPEC countries agree to a similar move.
OPEC produces around 33% of global oil supply but non-members such as Russia, Mexico, Oman and Kazakhstan jointly contribute a significant amount to the market too. Russia has already ruled out cutting its production and does not expect OPEC to change its policies during its meeting.
Iraq and Iran are members of the oil cartel and they have already stressed that they are against cutting output. Iraq has been increasing its production while Tehran has made it clear that it is waiting for sanctions to be lifted to boost its output capacity. Iranian oil minister Bijan Zangeneh told reporters on Thursday that it will be unacceptable and unfair to put pressure on Iran. “We do not accept any discussion about increases of Iran production after the lifting of sanctions. It is our right and anyone cannot limit us to do it. We will not accept anything in this regard,” he underlined.