Oil production deal may require additional time - source

Oil&Gas Materials 30 August 2016 14:54 (UTC +04:00)

Baku, Azerbaijan, Aug. 30

By Aygun Badalova - Trend:

A number of OPEC and non-OPEC oil producers have cast a new shadow of doubt over reaching a production deal that could help restore balance in the oil market and give a boost to prices, International Oil Daily (IOD) reported referring the sources.

The informal OPEC meeting is expected in late September in Algeria. It is expected that the talks on oil production freeze will be held between OPEC and non-OPEC countries.

The meeting will be held at the fringe of the International Energy Forum in Algiers from 26-28 September. The forum will bring together ministers, CEOs, international organizations like OPEC and the IEA, experts from 73 countries.

A Saudi industry source told IOD that the upcoming talks will be a good opportunity for both OPEC and non-OPEC to review the market situation, however reaching an agreement on an action may require "additional time."

Saudi Arabian Energy Minister Khalid Al-Falih told Reuters last week he does not believe an intervention in oil markets is necessary since the "market is moving in the right direction".

This was followed by the United Arab Emirates Energy Minister Suhail bin Mohammed al-Mazroui saying OPEC's current share of the oil market is "at a good level".

Analysts believe that Iran, which is still committed to boost its oil production, put the deal on oil output freeze under a big question.

“The big question remains whether a deal can be struck given that key players such as Iran still reserve the right to continue to increase production,” Ole Hansen, Head of Commodity Strategy at Saxo Bank told Trend previously.

Meanwhile, Iran’s Oil Minister Bijan Namdar Zanganeh believes that the country supports any action by oil producers aimed at market balance, but Iran has the right to continue reviving its share on the international oil markets.

Zanganeh said that Iran expects the other producers to recognize Tehran's right to revive its share in the global oil market.