![]() Interest was high going into the meeting, but some consultants-including those at Stratas Advisors- predicted OPEC production and strategy, including that of Saudi Arabia, would go unchanged. ![]() Yet the cartel’s biggest member, Saudi Arabia, has expressed a willingness to cooperate with a big caveat-others must cut production, too. Iran intends to raise its production by up to 1 MMbbl/d when sanctions are lifted, and Reuters reported that Iraq has vowed to further increase output in 2016. For OPEC, managing the impossible trinity of achieving higher market share, higher prices and higher demand through a nominal target which members continue to breach continues to be difficult.” “Past communiques have at least included statements to adhere, strictly adhere, or maintain output in line with the production target. “In our view, the lack of guidance on a production quota underlines the discord among members,” Barclays said in an analyst note. It might be an uphill battle, considering OPEC members are not even on the same page. But cooperation is not at 100%, although Secretary General Abdalla Salem El-Badri mentioned that some non-members are trying to determine how they can contribute to the effort. OPEC has had meetings with non-OPEC members in hopes of reaching an agreement on cutting production to raise prices. But changes in demand and global production, including from non-OPEC members, will be major factors as the downturn marked by lower commodity prices lingers impacting revenue of oil-producing countries and companies alike. The move, or lack thereof, could mean continued pressure on oil prices-at least for the first half of the year, analysts say. ![]() Members did not go into specifics given the large volumes of oil being produced world-wide but could meet again between January and June to review the situation. The cartel essentially decided to keep producing at current levels-which was about 31.3 million barrels a day (MMbbl/d) in October, more than 1 MMbbl above the ceiling it set last year. The much-anticipated meeting in December ended without the official statement unveiling an agreed-upon production ceiling. Uncertainty surrounding Iran’s re-entry into the oil market as the world remains awash in oil pushed OPEC deeper into a “wait-and-watch” mode, unmoved by tough commodity conditions that have left some of its own members in pain. OPEC leaves output ceiling at current level Meritorious Awards for Engineering Innovation (MEAs).Rextag database of energy infrastructure assets Prices for top E&P stocks and commodities. Information on assets, buyers and sellers, deal values, and more.Ī searchable database of oil and gas debt and equity offerings. ![]()
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