|OPEC officials will be playing coffee diplomats over the next six weeks to come up with a concrete deal to cut production agreed last week in Algiers. It will be a very hard sell with Iraq, Russia and Iran all increasing production at a frantic pace. Saudi Arabia is increasing exports rapidly also. |
"Consultations remain ongoing among the OPEC-14, the High Level Committee initiated by the OPEC conference is moving forward on the implementation of the Algiers decision," said OPEC Secretary General Mohammad Barkindo at the G-24 ministerial meeting in Washington.
Some strong Turkish coffee to clinch this deal, when they start in Istanbul at the World Energy Congress from Oct. 9-13. OPEC energy ministers will meet each other and Russian officials for informal talks. Russia's Energy Minister Alexander Novak said in a statement he expected an output freeze deal before the OPEC meeting on Nov. 30. Who is cutting production though?
OPEC on Sept. 28 agreed to reduce output in ts first output cut since the 2008 financial crisis to a range of 32.50 million barrels per day to 33.0 million bpd. They formed a 'High Level Committee' but did not address how much each of the 14 OPEC members will produce which as I said is now more problematic with even higher production.
OPEC High Level Committee's first meeting is expected to take place at OPEC's Vienna headquarters around Oct. 28-29. From here meetings of the OPEC governors to discuss OPEC's long-term strategy from Nov. 1-4.
A technical meeting of OPEC's national representatives then meet in Vienna on Nov. 23-24, followed possibly by a second meeting of the High Level Committee on Nov. 25, OPEC sources said, which will then present its recommendations to the ministers when they meet at the next ministerial meeting on Nov. 30
"Steps are being taken to further develop a framework for high-level consultations between OPEC and non-OPEC oil-producing countries. We believe there is firm and common ground for continuous collaborative efforts among producers, both within and outside OPEC." added OPEC Secretary General Mohammad Barkindo
So if you trade oil expect lots of nosie and news algo related shifts, changing analtys calls and lots of coffee. Nothing new perhaps but news services will make it seem like it.From Traders Community News Desk