OPEC keeps oil production at current high level

OPEC keeps oil production at current high level

OPEC nations decided Friday to keep producing oil at their current high levels, effectively acknowledging their inability to push up crude prices, AP reported.

An attempt to nudge the cost of oil higher would have involved lowering output. Instead, the organization's endorsement of present output, which is more than 1.5 million barrels a day above the formal ceiling of 30 million barrels, is likely to push the price of oil down further.

The ministers of the Organization of the Petroleum Exporting Countries appeared to have little choice. Major producing nations in the cartel were opposed to reducing output. Instead, OPEC is poised to produce more oil.

Iran, which once pumped around 4 million barrels a day and is now down to about half that, is preparing to come back fully on line once it sheds nuclear-related sanctions in a few months.

Senior oil official Amir Hossein Zamaninia said last week Iran hopes to bring an extra 500,000 barrels on the market by early next year. He said he hopes the extra output will be accommodated within OPEC's formal ceiling of 30 million barrels a day.

Arriving for Friday's meeting, Iranian oil minister Bijan Namdar Zanganeh said Iran is ready to discuss a ceiling for its production - but only after his country makes a "full return to the market."

Iraq is also resurgent. The country has seen the fastest rise in crude production in the world this year. It was pumping more than 4 million barrels a day last month and was responsible for last month's biggest monthly rise in output among all OPEC countries.

And the ministers agreed to readmit past member Indonesia, to expand their ranks to 13. While that country's production goes mostly for domestic consumption, that move could also add some to the total amount of OPEC barrels on sale.

A final statement on the meeting was unusual in not mentioning any decision on production ceilings. But conference president Emmanuel Ibe Kachikwu told reporters that there was agreement to maintain "current actual production," which is well above the formal ceiling set at 30 million barrels a day.

Friday's news pushed oil prices down, with the U.S. benchmark rate sliding 2.7 percent on the day to $39.99.

The decision effectively leaves it up to individual members how much crude to pump and was a strong signal of OPEC's eroding ability to act as a group in efforts to influence supply, demand - and prices.

Kachikwu acknowledged as much, telling reporters asking about Iran's return: "At the end of the day every country has a sovereign right to bring to the marketplace its resources."

"The logic is simple," he said, of OPEC's present clout in a market where non-members such as Russia and U.S. shale producers play an increasingly large role. "We are only 35 percent of the producers an there are still 65 ... percent producers out there."

Some OPEC members are producing at their limit and like at previous meetings, the pressure was on swing-producer Saudi Arabia, which accounts for about a third of OPEC's output, to cut back. But the desert kingdom remained opposed.

The Saudis already resisted cutbacks a year ago, a strategy calculated to put higher-cost outside competitors - like U.S. shale oil producers - out of business. The hope was that would eventually lead to a drop in supply and a rebound in prices.

That plan clearly hasn't worked, with benchmark U.S. crude's value falling by more than 40 percent over the past year and now hovering around the $40 mark per barrel.

Cushioned by past profits on oil, the Saudis can hold out, even if production costs exceed sale revenues. Not so much some others.

Kachikwu, the conference president who also represented Nigeria at the meeting, acknowledged that continued low prices will hurt his country.

"There will be pain," he said.

Turkey discloses number of ships received by Bandirma port from Jan. through March 2021
Turkey discloses number of ships received by Bandirma port from Jan. through March 2021
Russia's 2M2021 import of Turkish cars grows in value
Russia's 2M2021 import of Turkish cars grows in value
Fars Province to be connected to north-east and south-east of Iran via railway line
Fars Province to be connected to north-east and south-east of Iran via railway line
Loading Bars
Latest
Azerbaijani team grabs bronze in exercise with 5 balls at Rhythmic Gymnastics World Cup in Baku
Italian gymnast grabs gold in exercise with ball at Rhythmic Gymnastics World Cup in Baku
Israeli gymnast grabs gold in exercise with hoop at Rhythmic Gymnastics World Cup in Baku
Final day of Rhythmic Gymnastics World Cup starts in Baku - Azerbaijani graces competing for medals (PHOTO)
Industrial enterprises to be put into operation in Iran’s Tehran Province
Azerbaijani Economy Ministry announces winner of tender on assessment of feasibility study
Turkey discloses number of ships received by Bandirma port from Jan. through March 2021
Azerbaijani president, first lady pay tribute to Azerbaijanis who made unparalleled contribution to victory over fascism (PHOTO)
EU and India agree to resume trade talks at virtual summit
Azerbaijan strongly condemns attempts to distort truth about WW2, justify fascism - MFA
First Vice-President Mehriban Aliyeva makes Instagram post on Victory Day over fascism (PHOTO)
India's COVID-19 tally surpasses 22 mln with over 400,000 new cases
China’s Long March-5B carrier rocket’s last stage enters atmosphere
Brazil sees 2,202 more COVID-19 deaths
Red Cross to hand over Georgia 100 thousand Sinopharm vaccine shots
Russia's 2M2021 import of Turkish cars grows in value
Turkey reports 18,052 new COVID-19 cases, 5,016,141 in total
“Covo-Pasteur”, “Barakat” vaccine to hit market soon: Rouhani
Daily COVID-19 case count at 2,350 in Kazakhstan
China reports 12 new COVID-19 cases vs seven a day earlier
Chile reports third consecutive day of over 6,000 daily COVID-19 cases
UN remembers the dead of WWII
2 people, including child, shot in NYC Times Square
Attack on Syrian government forces repelled in Idlib, at least ten militants killed
WHO records over 817,000 new daily cases of COVID-19 worldwide
Iraq decides to quarantine evacuees from India for 14 days as total cases hit 1,108,558
UK records another 2,047 coronavirus cases, 5 deaths
Azerbaijan marks Day of Victory in Great Patriotic War
Iranian trucks do not transport goods to Karabakh - Iranian embassy
NCDC: Georgia to receive extra half a million Sinopharm vaccine doses in June
Iran may extend cooperation on inspections with IAEA
Consumers must protect IoT devices - Fortinet
Azerbaijan’s Baku city has beautiful National Gymnastics Arena – Russian gymnast
Baku holds awarding ceremony of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani team reaches finals in group exercises as part of Rhythmic Gymnastics World Cup (PHOTO)
WB plans to issue loan to finance another road project in Azerbaijan
Any attempt to glorify fascism is disgusting - Russian expert
Group team competitions underway in Baku as part of Rhythmic Gymnastics World Cup (PHOTO)
Azerbaijani ADA University sсreens film timed to Day of Victory in WWII (PHOTO)
Azerbaijan names finalists in exercise with clubs as part of gymnastics World Cup in Baku
Azerbaijani gymnast reaches finals in exercise with ribbon as part of World Cup in Baku
Iran providing much needed mechanization for farmers in Qazvin Province
Germany’s import of steel from Turkey up
Azerbaijani president allocates funds for construction of new school in Shusha
Funds allocated for construction, repairs of educational institutions in Baku
Uzbekistan interested in co-op with French pharmaceutical company
Funds allocated for creation of heat supply system in Azerbaijan’s Shusha
France’s import of steel from Turkey up
Iran's Energy Exchange announces products to be on sale on May 9
Azerbaijani Finance Ministry places medium-term bonds on auction
Cotton spinning factory of Turkmenistan’s Lebap region names production data
Chevron should remain cautious in further increasing oil & gas production
Azerbaijan to continue online lessons in 10th-11th grades, minister says
Foreign shipping lines expected to return to Iran
Austria increases import of steel from Turkey
Fars Province to be connected to north-east and south-east of Iran via railway line
1Q2021 value of operations via interbank national settlements system in Azerbaijan down
United Arab Bank turns around with Dh10.2 million net profit
Azerbaijan's MoD shares video about Shusha - cultural capital of Azerbaijan
New jobs created in Iran's Ardabil Province
Turkmenistan's Turkmengas opens tender for overhaul of gas turbine engines
Iran’s Bahar Azadi gold coin price falls
World Cup in Baku became one of my favorite competitions - Azerbaijani gymnast (PHOTO)
Khazar Consortium opens tender for purchase of controller
Value of Iran's import of Turkish steel in 4M2021 grows
Russia’s coronavirus reproduction rate remains below 1
Azerbaijan sets up new military units in liberated lands (PHOTO)
Kazakhstan increases exports to UAE
Best moments of second day of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Kazakh gymnast shares impressions of Rhythmic Gymnastics World Cup taking place in Baku
Cult of personality of Garegin Nzhdeh in Armenia can be compared with that of Hitler in Nazi Germany – Russian analyst
Azerbaijan shares data on number of vaccinated citizens for May 8
EU sceptical on vaccine waiver, but ready to discuss proposal
Azerbaijan confirms 649 more COVID-19 cases, 1,720 recoveries
Iran declares details of exports from Ardabil Province
Uzbekistan projects volume of direct foreign investments for 2021
Exports via Iran's Sistan and Baluchestan Province up
Turkey's 4M2021 export of steel to Georgia surges in value
China boosts import of Azerbaijani products y-o-y
Azerbaijan's Central Bank unveils data on foreign exchange transactions over March 2021
Azerbaijani Ro-Pax type ferry reaches Kazakh port of Kuryk (PHOTO)
G-7 countries back Taiwan's observer status in World Health Assembly
Lack of minefield maps delays mine clearance - Trend TV
Uzbekistan’s 1Q2021 cars export revealed
Results of Azerbaijani gymnasts’ performance in exercises with clubs, ribbons as part of Rhythmic Gymnastics World Cup in Baku (PHOTO)
Turkish Energy Ministry prolongs oil, gas exploration licenses for several companies
Azerbaijani president displayed successful strategy on battlefield and in media - two tactics of Great Victory
Turkmenistan sees active dev't of cotton industry
Latvia reveals main economic indicators of bilateral cooperation with Georgia
Iran discloses number of restored mines in South Khorasan Province
Germany's confirmed coronavirus cases rise by 15,685
Azerbaijan's CBC radio starts broadcasting in Karabakh
Iran's Khorasan Razavi Province to increase trade with Turkmenistan
First Vice-President Mehriban Aliyeva made Instagram post on Shusha (VIDEO)
Iran to import Coronavirus vaccine - President Rouhani
Uzbekistan, Kazakhstan implementing road and railroad construction projects
Competitions in Baku always held at highest level - Slovenian gymnast
Azerbaijani Defense Ministry discloses events to be held on occasion of Victory Day - May 9
Buy/sell operations at Iran Mercantile Exchange revealed
Iran Khodro Diesel Company boots its production
All news