OPEC edges closer to raising oil output

OPEC edges closer to raising oil output

OPEC edges closer to raising oil output

Ecuador also expects a deal allowing more oil to flow onto the market, but something smaller than the 1.5 MMbpd Russia has proposed.

Various analysts have been wondering whether the Saudis will manage to pull off the listing of 5 percent of Aramco this year, amid speculation as to which foreign stock market the Saudis will choose, if any, and if the price of oil would be high enough to support a high valuation for the company.

Tehran is concerned that an increased supply of crude on the market would make it easier for the United States to pressure allies to support a ban of Iranian oil similar to the one imposed under the Obama administration. "Need to keep prices down!" "One hundred dollars isn't going to help OPEC, it's not going to help us in West Texas".

As the Organisation of Petroleum-Exporting Countries (OPEC) faces a rift within, ministers of its member countries have gathered in Vienna, the group's headquarters, to discuss the issue of global oil output.

Russian Federation and Saudi Arabia are expected to increase their production to compensate for the potential decline in oil production after U.S. sanctions on Iran and Venezuela.

That would effectively mean a modest boost from producers such as Saudi Arabia that have been voluntarily cutting more deeply than planned.

Iran, OPEC's third-largest producer, had demanded OPEC reject calls from Trump for an increase in oil supply, arguing that he had contributed to a recent rise in prices by imposing sanctions on Iran and fellow member Venezuela. Currently, Libya is producing only 450,000 b/d after clashes at oil ports, Venezuela is declining about 40,000 b/d per month, and Iran's exports are set to drop later in the year because of re-imposed sanctions.

Analysts had expected OPEC to announce a real increase in production of 500,000 to 600,000 barrels per day (bpd), which would help ease tightness in the oil market without creating a glut.

OPEC did not say which of its members would supply the additional crude, which should start to flow into the market in July. At the same time, higher Saudi Arabian production reduces spare capacity.

"We think some of the restrictions should be lifted, but consensus will be needed to discern at what level this is done", said Ecuador's Minister of Hydrocarbons Carlos Perez.

However, questions remain over Venezuela, Libya and Angola, whose declines can not be reversed at short notice.

"As a group we can meet the 100 percent compliance".

UAE's Energy Minister Suhail Mohamed Al Mazrouei arrives for the Opec meeting in Vienna.

Three Opec sources said ministers would debate on Thursday whether to raise supplies by 1 million bpd as the main proposal for the meetings of Opec and its allies on Friday and Saturday.

Opec has a history of hard meetings as well as clashes between Iran and Saudi Arabia.

"Both Saudi and Iran can show that they won", an OPEC delegate said.

"It will be 1m collectively", Mr Falih said as he left the meeting, although the final communique did not mention the figure.

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