Baku, Azerbaijan, May 20
By Aygun Badalova - Trend:
OPEC's early June meeting looks unlikely to generate a deal that eluded producers in Doha last month, analysts of the US JP Morgan bank said in a weekly Oil Market report obtained by Trend.
Analysts said the prospects of Iran agreeing to participate in a deal to cap production would become more compelling for them than currently if the country reaches oil production level of 4 million barrels per day by that period.
"However, by the same measure, the recent developments in Saudi Arabia, following the replacement of Ali Al Naimi with Khalid Al Falih as Minister for Energy, Industry and Mineral Resources, raises a question over whether these production gains will prompt a renewed focus on market share between the Middle East Gulf producers," analysts said.
They mentioned that some reports already highlight that Saudi Arabia is likely to increase production in coming months.
The last meeting of oil producers in Doha ended without reaching any agreement. The talks on oil output freeze collapsed after Saudi Arabia surprised the group by reasserting a demand that Iran also agrees to cap its oil production.
The next OPEC meeting will be held June 2.