Did the Weekend OPEC meeting fail? Oil extends fall

Weekend OPEC meeting did not bring any important decisions to the oil markets, yet the oil prices extended their losses. What was discussed during the gathering in Vienna?

31 October, AtoZForex The losses in the oil prices have deepened on Monday, as the non-OPEC producers did not make any specific commitment to join the Organization of the Petroleum Exporting Countries (OPEC) in their attempt to limit the oil output levels.

Did the weekend OPEC meeting fail? 

The OPEC oil cut deal is aimed at the stabilizing the oil markets and encouraging the oil prices. Non-OPEC producers declined to specify their relation in regards to the oil cut deal, adding that they wanted the oil cartel to solve its differences at first.

The experts and authorities from OPEC and non-OPEC countries, such as Azerbaijan, Brazil, Kazakhstan, Mexico, Oman, and Russia gathered for the talks in Vienna on weekend. They have agreed to have an extra meeting in November prior to their planned meeting on the 30th of November.

December London Brent crude LCOc1 was changing hands at $49.42 a barrel, down 0.6 percent at 0750 GMT, where the December NYMEX crude CLc1 was also down 0.6 percent, trading at $48.41 per barrel. Investors have put off the riskier assets on the possible tightening of the US presidential race in the wake of the news regarding the FBI Clinton’s email investigation.

Numbers need to be agreed

OPEC and non-OPEC countries have stated in the joint statement that their Vienna Saturday meeting was a “positive development” in the direction of finalization of oil cut deal on the 30th of November.

On Friday, OPEC countries have failed to decide on the process of the global oil output limit deal, as the Iran appeared hesitant to even cap its production. Iran wants to continue pumping the production until it hits 4.2 million barrels a day, according to Iranian oil authorities.

In addition, Russia anticipates boosting its oil production by 0.7 percent in 2017 and a further 0.9 percent in 2018. Senior Brazilian oil official Marcio Felix has called Vienna talks “just conversations,” stating the OPEC members did not agree on their own individual quotas. Magzum Mirzagaliyev, Kazakhstan ‘s deputy energy minister, also added:

“We have to agree on the real numbers.”

He believes that non-OPEC producers agreed to meet regularly with the oil bloc, where the next meeting is due on the 26th of November.

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