Top OPEC oil exporter Saudi Arabia has told the producer group it will not attend talks on Monday with non-OPEC producers to discuss limiting supply, OPEC sources said, as it wants to focus on having consensus within the organization first.
OPEC has a "technical deal" that could be solidified at a technical meeting this week in Vienna. All the major players are saying they are optimistic that a deal will be reached barring any last-minute blow ups. Saudi Arabia, Russia, Iraq and Iran all say that a production deal is within reach and it is possible that even the skeptics are starting to believe it.
Oil prices rose by around 1% on Wednesday, boosted by evidence of declining production in China and falling U.S. inventories, while an upbeat OPEC statement on its planned output cut also supported the market.
Saudi Arabia attracted massive investor demand of about $67 billion on Wednesday for its first international bond offer, as the world's top crude exporter allayed concern about the impact of low oil prices on its finances.
They said it wouldn’t get done but OPEC went ahead and did it anyway. OPEC, in Algiers, agreed to reduce oil output to a range of 32.5 to 33 million barrels a day that could eventually lead to a larger cut. But it is not just the amount of oil, the key is that the cartel agreed to anything.
Talks between Saudi Arabia and Iran had not gone well as the Iranians seemed intent on raising output to 5 million barrels a day and the Saudis wanted to have independent verification of oil output to make sure there was no cheating.
Saudi Arabia offering to cut production in a sign of good faith after they lowered expectations for a deal in Algiers this week. Saudi Arabia says they are ready for any outcome and there is talk that if OPEC can come to an agreement, they could still formalize this meeting. OPEC negotiations are heating up as the cartel members look to solidify a deal to restrain oil output.
Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week, four sources familiar with the discussions told Reuters.
The price of crude oil has been caught in one of its most volatile couple of weeks in months after Oragnization of the Petroleum Exporting Countries (OPEC) and rival Russia hinted they may discuss a possible output freeze, as demand slows and a global surplus becomes more entrenched.