Opec is moving closer towards finalising this month its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes, ministers and sources said.
The energy minister of Saudi Arabia said on Thursday he was optimistic about Opec's deal to limit oil output and mentioned the lower end of a previously agreed production target, helping spur a rally in the price of crude.
Oil prices edged higher in volatile trading as the market weighed Russia's comments about a possible meeting with Saudi Arabia on possible output cuts against a bigger-than-expected US crude storage build.
Saudi Arabian Energy Minister Khalid al-Falih is expected to travel to the Qatari capital, Doha, this week for meetings with oil-producing countries on the sidelines of an energy forum, three sources familiar with the matter said.
Oil fell more than 2 percent to its lowest in three months on Monday, as the prospect of another year of oversupply and weak prices overshadowed chances OPEC will reach a deal to cut output.
Gulf OPEC members Saudi Arabia and Kuwait have kept their oil production steady in October compared to the month before, according to official numbers submitted to OPEC, industry sources familiar with the matter said.
Coordination between members of oil-exporting cartel OPEC and non-member producers is ‘vital’ to rebalance the market, OPEC chief Mohammad Barkindo said Monday.
OPEC officials held talks with Russia and other non-cartel members Saturday in Vienna to debate how to implement a plan aimed at cutting oil output to reduce a global supply glut and bolster prices.
Oil edged above $50 a barrel on Thursday as a further drop in US crude inventories countered investor doubts that OPEC will be able to implement a production cut.
Iraq's Oil Minister Jabar Ali al-Luaibi said on Sunday his country should be exempted from output restrictions as it was fighting a war with Islamic State.
Iran hopes non-OPEC Russia and OPEC heavyweight Saudi Arabia can agree to coordinate on possible actions on the global oil market, Iranian Oil Minister Bijan Zanganeh said on Sunday.
An increase in the forecast Opec basket price to $54 a barrel in 2017 will give some respite to the GCC countries, BMI Research said, even as the Fitch Group company expects an aggregate fiscal deficit of $183bn for the region next year.
