Saudi Arabia: Deal can be done this week to boost oil supply

  • Saudi Arabia: Deal can be done this week to boost oil supply

Saudi Arabia: Deal can be done this week to boost oil supply

Pioneer Natural Resources chairman Scott Sheffield-who is in Vienna for an global OPEC conference-warned that oil prices could jump to $100 a barrel if the cartel and friends don't boost production.

Speaking at the same event in Vienna, Iranian Oil Minister Bijan Namdar Zanganeh reiterated his country's resistance to hiking oil output and accused Trump of trying to politicise OPEC.

Brent reached a 3-1/2-year high above US$80 a barrel last month but has fallen steadily in recent weeks as Saudi Arabia, de facto leader of OPEC, has signalled it intends to raise production to stabilize prices.

When OPEC and its allies, which include Russia, Kazakhstan and Mexico, agreed to cut output in late 2016, they announced a 1.8 million-barrel-a-day reduction.

"I'm confident that at the end of the day reason will prevail", Saudi Energy Minister Khalid Al-Falih told reporters in Vienna after a succession of meetings.

Since Opec and Russian Federation agreed in late 2016 to curb production in a bid to rebalance world supply and demand, crude prices have jumped 55%.

India, which is the world's third-biggest oil consumer and importer, on Wednesday urged OPEC nations to fill a supply gap and ensure sustainable oil prices as geopolitics affect the output of some producers.

That would effectively mean a boost from producers such as Saudi Arabia that have voluntarily cut more deeply than planned.

"Iran rejected a potential compromise, saying it won't support even a small increase in oil production". But Opec could still agree a last-minute deal on Friday by compromising on a lower output increase below 1 million bpd, Opec sources have said.

"We want to prevent the shortage and the squeeze that we saw in 2007-2008", Falih said, referring to a time when oil rallied close to $150 per barrel.

Iran is most vocal in expressing its opposition, and has said that it would veto any proposal for a production increase with the support of Venezuela and Iraq. Zanganeh was due to attend a ministerial committee on Thursday, two sources said. Iran is usually not part of the committee, which groups Russia, Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Algeria and Venezuela.

Zanganeh told CNN on Wednesday that if OPEC returned to regular compliance, the real supply increase from the group would constitute around 460,000 bpd.

He said now high oil prices dent the economic development of many countries.