Iran May Suggest OPEC Reduce Daily Oil Production
Posted: 11/24/2014 04:11:05 Edited: 11/24/2014 04:11:56 Clicks: 1655
Oil Ministers of OPEC members were gathering Vienna, the Capital of Austria at last weekend. Iran may suggest OPEC reduce daily oil production.
Bijan Namdar Zanganeh, the Oil Minister of Iran will meet with Ali Al-Naimi, the Oil Minister of Saudi Arabia, during interval of OPEC meeting which will be held on November 27. Iran will make effort to persuade Saudi Arabia to reduce oil production. Previous that, some members had ever appealed oil production reduction to support oil prices.
However, it is still unclear whether an agreement can be reached on the meeting. As the largest global oil exporter, Saudi Arabia also does not declare. Representatives of OPEC predict that it is quite difficult to make a decision. Moreover, analysts have divergence on result.
Currently, OPEC accounts for about 40$ of global oil supply. For oversupply in oil market and oil prices having declined by 27%, members of OPEC will estimate their own total oil production in November. Last week, half of analysts estimated that OPEC would reduce daily oil production to support oil prices while others considered that current production was not against official objective of 30 million barrels per day.
Last week, future prices of Brent oil was below 80 dollars per barrel, which resulted in conjecture that OPEC may reduce oil production to eliminate oversupply. Before meeting in November, members of OPEC also enhanced foreign trips to discuss how to response for oil prices having declined to the lowest level for four years.
Bijan Namdar Zanganeh, the Oil Minister of Iran will meet with Ali Al-Naimi, the Oil Minister of Saudi Arabia, during interval of OPEC meeting which will be held on November 27. Iran will make effort to persuade Saudi Arabia to reduce oil production. Previous that, some members had ever appealed oil production reduction to support oil prices.
However, it is still unclear whether an agreement can be reached on the meeting. As the largest global oil exporter, Saudi Arabia also does not declare. Representatives of OPEC predict that it is quite difficult to make a decision. Moreover, analysts have divergence on result.
Currently, OPEC accounts for about 40$ of global oil supply. For oversupply in oil market and oil prices having declined by 27%, members of OPEC will estimate their own total oil production in November. Last week, half of analysts estimated that OPEC would reduce daily oil production to support oil prices while others considered that current production was not against official objective of 30 million barrels per day.
Last week, future prices of Brent oil was below 80 dollars per barrel, which resulted in conjecture that OPEC may reduce oil production to eliminate oversupply. Before meeting in November, members of OPEC also enhanced foreign trips to discuss how to response for oil prices having declined to the lowest level for four years.
