Saudi, Russia Pre-OPEC Talks Yield No Oil Output Cut

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Impromptu talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico yield no agreement on how to address a growing oil glut.


VIENNA, Nov 25 (Reuters) - Impromptu talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico yielded no agreement on Tuesday on how to address a growing oil glut, ending without any plan to cut output despite a collapse in prices.

In a day of shuttle diplomacy before OPEC's output meeting in Vienna on Thursday, energy officials from non-members Russia and Mexico rushed to the Austrian capital to push OPEC kingpin Saudi Arabia on the 30 percent price fall since June.

Saudi has kept the market guessing about its response to crude's fall amid rapidly rising U.S. shale output, but Tuesday's talks had led to speculation in some quarters that Riyadh might back a coordinated cut involving non-OPEC members.

Venezuelan Foreign Minister Rafael Ramirez told reporters after the talks that while all sides agreed current prices were "not good" for producing countries, no coordinated output cuts were arranged on Tuesday.

"We discussed the situation in the market, we shared our points of view, we need to keep in contact and we agreed to meet again in three months," Ramirez, who until recently was oil minister and president of state oil company PDVSA, said.

Venezuela, a noted price hawk, would try for an output agreement within OPEC on Thursday instead, he said.

Oil prices turned lower after the talks, with international benchmark Brent falling more than $1 a barrel.


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Brent Crude Oil : $51.46/BBL 0.61%
Light Crude Oil : $50.52/BBL 0.64%
Natural Gas : $2.83/MMBtu 5.35%
Updated in last 24 hours