Business
Tension in oil market ahead of OPEC meeting
Tension is mounting among member-countries of the Organization of Petroleum Exporting Countries (OPEC) as final preparations towards it Wednesday, November 30, 2016 meeting in Algeria reaches advanced stage.
Speculation that members may reach a consensus had seen oil price at the international market remaining a little bit stable, though cautious approach to order still played out on Thursday
International media reports monitored by Ripples Nigeria show that Brent crude picked up on Thursday at 0.6 per cent selling at $48.09 per barrel as against $48.05 on Monday.
Algiers, the Algerian capital is said to be agog with visitors and media presence as delegates and interest groups maintain constant touch for the meeting described as make or mar parley by analysts.
It is being speculated that non OPEC members, led by Russia and Brazil may accede to pressures to cut down their oil production, billed to rise by 600,000 barrels per day (bpd) in 2017 from its present 400,000 bpd.
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“On its part, OPEC production quota, put at 950,000 bpd is expected to be reduced by a quarter after the meeting, failure of which another round of market fall will be expected,” said a Venezuelan minister.
But an official of Iran and his Algerian counterpart are billed to have crucial talks on Monday to have a final draft of the meeting agenda.
Thought Saudi Arabia reportedly agreed to abide by the resolution of the forth coming meeting, similar consent had not been obtained from arch rival, Iran.
Though expectation is high, if Iran refuses to cut production, the last hope of re-cooping lost gains would have been lost.
The headquarters of OPEC in Vienna is optimistic that there will be appreciable progress after the meeting.
Nigerian officials say the country’s powerful delegation to the meeting will be led by the Minister of State, Petroleum, Ibe Kachukwu.
By Emma Eke….
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