Saudi & Venezuela Meet Mexico Ahead of OPEC Meeting
Two OPEC members, Saudi Arabia and Venezuela, will meet with Mexico this week in an effort to get backing if the cartel decides to reduce output as result of Iraqi supplies returning to the world market. The meeting in Madrid between Saudi Oil Minister Ali al-Naimi and his counterparts, Venezuela's Rafael Ramirez and Mexico's Ernesto Martens, comes just days before next week's OPEC meeting in Qatar to decide third quarter cartel production.
Iraq announced it was resuming oil exports earlier on Thursday, raising the prospect of production cuts by OPEC and others to make room. In 2001, OPEC cutback on output on the condition that rival exporters, such as Mexico, Norway and Russia, also contributed to the move. Despite initial uncertainty, all three joined the OPEC plan in the end.