OPEC Fails To Alter Production Ceiling After Iran Pledges To Boost Output

OPEC Fails To Alter Production Ceiling After Iran Pledges To Boost Output
OPEC fails to agree an oil production ceiling at meeting that ended in acrimony.

Reuters

VIENNA, Dec 4 (Reuters) - OPEC members failed to agree on an oil production ceiling on Friday at a meeting that ended in acrimony, after Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions.

A final statement was issued with no mention of a new production ceiling, apparently allowing member countries to continue pumping oil at current rates into a market that has been oversupplied.

OPEC's secretary general Abdullah al-Badri said the body could not agree on any figures because it could not predict how much oil Iran would add to the market next year, as sanctions are withdrawn under a deal reached six months ago with world powers over its nuclear programme.

Most ministers left the meeting without making a comment. Iranian oil minister Bijan Zangeneh had said before the meeting that Tehran would be prepared to discuss action only when his country reached full output levels, if and when Western sanctions are lifted.

Saudi oil minister Ali al-Naimi earlier had said he hoped growing global demand could absorb an expected jump in Iranian production next year: "Everyone is welcome to go into the market."

Iran has repeatedly said it would boost production by at least 1 million barrels per day when sanctions are lifted. Without curbs elsewhere, this would add to a global glut, as the world is currently consuming up to 2 million bpd less than it is producing.

(Additional reporting by Vladimir Soldatkin in Vienna, Shadia Nusralla and Marianna Parraga in Houston; Writing by Dmitry Zhdannikov; Editing by Peter Graff)

Copyright 2016 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles
From the Career Center
Jobs that may interest you
Sr. IT Applications Analyst/Developer
Expertise: Accounting
Location: Houston, TX
 
United States Duncan MFG: Entry Level Machine Operator - Sr. Machine Operat
Expertise: Materials Management |Supply Chain Management
Location: Duncan, OK
 
United States Duncan MFG: Entry Level Machine Operator
Expertise: Materials Management |Supply Chain Management
Location: Duncan, OK
 
search for more jobs

Brent Crude Oil : $54.33/BBL 0.81%
Light Crude Oil : $51.5/BBL 1.29%
Natural Gas : $3.75/MMBtu 1.35%
Updated in last 24 hours