Talks on oil output freeze deal unlikely to get far
Baku, Azerbaijan, Sept. 7
By Aygun Badalova - Trend:
Talks on oil output freeze between major oil producers unlikely to get far, analysts of the British economic research and consulting company Capital Economics believe.
“We doubt that talks on a deal to freeze oil output (which could push up oil prices) with other major producers, notably Russia, will get far,” Jason Tuvey, Middle East Economist at the company said in a report, obtained by Trend.
Ongoing tensions with Iran, issues with enforceability and concerns among other OPEC members mean reaching an agreement will be difficult, he believes.
He also mentioned the recent statement of Saudi Oil Minister Khalid al-Falih that there is no need to freeze output as oil prices are recovering.
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.
Earlier Iran said 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.
In September Russia and Saudi Arabia signed a joint statement in order to stabilize oil market. The sides highlighted the importance of constructive dialogue and close interaction between the major oil producers in order to maintain stability on oil market and contribute to stable investments in the long-term.
However, Saudi Oil Minister Khalid al-Falih, after signing an energy agreement with his Russian counterpart Alexander Novak, said that there is currently no need to limit the oil output.
“There is no need now to freeze the production. It is among the preferred options, but it is not necessary today. The market is improving day by day,” he said in an interview with Al Arabiya television.