El-Badri: Oil Production Freeze Success Requires OPEC, Non-OPEC Nations

OPEC Chief: Oil Production Freeze Success Requires OPEC, Non-OPEC Nations
OPEC Secretary General Abdalla Salem El–Badri tells reporters all oil producing nations - including the United States - should agree to production freeze.

The success of a proposed oil production freeze first floated by Russia and Saudi Arabia depends on whether all other oil-producing nations will get onboard, OPEC Secretary General Abdalla Salem El-Badri said following a discussion Monday at IHS CERAWeek.

“If all the countries, OPEC and non-OPEC, will agree to freeze, then we will know the production of each country and from there, we will watch how it will develop in the next three, four months,” he told reporters. “But it’s not [only] OPEC. It is OPEC and non-OPEC.”

In recent days, Russia and Saudi Arabia announced an agreement with Venezuela and Qatar to freeze production at January levels – if Iraq and Iran would participate. El-Badri said he has discussed the freeze with most oil producing nations – but not the United States – and Iraq and Iran will decide “later” whether they will engage.

“We have to find a solution to this. But this will not be done by OPEC. It must be a cooperation between OPEC and non-OPEC, and OPEC is ready to cooperate,” he said. “I look at the result. Either we have a freeze or we have a decline. For me, it is the same to the market.”

Analysts have said otherwise, though, suggesting that freezing volumes at glut levels would have little impact. El-Badri said initiating a dialogue is key to making a dent in the glut.

“Everybody is suffering. Any country that is producing oil is suffering,” he said. However, “We’ve been through this before. We have seen many cycles pass … A high price will not last. And low price will not last. This is the cycle of the oil industry.”

OPEC Chief: Oil Production Freeze Success Requires OPEC, Non-OPEC Nations
OPEC Secretary General Abdalla Salem El-Badri at HIS CERAWeek.
Source: Rigzone

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com


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.

Related Companies

Our Privacy Pledge

More from this Author
Deon Daugherty
Senior Editor | Rigzone
 -  Op-Ed: Crude Export Habits Could Facto... (May 26)
 -  BLOG: OFS Crew Cuts May Shave Near Ter... (May 25)
 -  Come Together: All Eyes On OPEC's Epic... (May 24)
 -  Politics Won't Slow Mexico As It Barre... (May 24)
 -  Op-Ed: With Saudi Aramco IPO Looming, ... (May 18)

Most Popular Articles

From the Career Center
Jobs that may interest you
Category Specialist III
Expertise: Purchasing
Location: Anchorage, AK
Financial Reporting Analyst
Expertise: Accounting
Location: Houston, TX
Supply Chain Coordinator
Expertise: Supply Chain Management
Location: Houston, TX
search for more jobs

Brent Crude Oil : $51.46/BBL 4.63%
Light Crude Oil : $48.9/BBL 4.78%
Natural Gas : $3.18/MMBtu 0.90%
Updated in last 24 hours