Saudi Arabia works on convincing Russian Federation to join oil cuts

Data source Bloomberg

Oil prices skid amid global stock market slump, swelling US supply

President Trump's Tweet could be seen as a warning to the cartel to measure any production cuts carefully, but OPEC has always been the target of Trump's tweets, even prior to his presidency, chastising the organization for restricting oil during the near-$100/barrel days.

Iranian oil minister has lashed out at U.S. special representative for Iran Brian Hook over his "meddlesome" meetings with members of the Organization of Petroleum Exporting Countries in Vienna, asserting that OPEC is an independent body that does not take orders from the US.

Trump has repeatedly accused the oil cartel of keeping prices artificially high.

Most producers made clear they agree on the need for a cut in oil production. But they're contending with vociferous opposition from the US president, who's taken to using his Twitter account to berate the group's policies and sees low oil prices as key to sustaining America's economic growth.

Iran is suffering both as a result of lower prices and a decline in its oil exports because of the United States sanctions.

"Russia, a major oil producer but not a member of OPEC, will meet with the producer cartel on Friday to discuss production levels, and it is widely expected that a supply cut will be agreed". In preparatory meetings ahead of this week's summit, delegates had said a cut of as much as 1.3 million barrels a day next year is needed as demand growth slows and USA shale production surges.

Data Source Bloomberg

"We must be excluded from any decision to cut production as long as illegal United States sanctions are not lifted", Iran's Oil Minister Bijan Namdar Zanganeh said on Wednesday evening as he arrived in Vienna.

"The oil cut will be between 1.0 and 1.3 million bpd".

Possibly complicating any Opec decision is the crisis around the killing of journalist Jamal Khashoggi at the Saudi consulate in Istanbul in October. However, Saudi Energy Minister Khalid al-Falih told reporters Thursday morning that a cut of 1 million barrels would be sufficient.

However, analysts at ING told AFP news agency that the United States administration could possibly use the murder of journalist Jamal Khashoggi as leverage.

The deal is monitored by the Joint OPEC/Non-OPEC Ministerial Monitoring Committee (JMMC), which is dominated by Saudi Arabia and Russian Federation.

Why is Qatar leaving OPEC?

Sask. won't follow Alberta with cut to oil production
Oil prices have been making headlines after Canadian crude dropped as low as US$14 a barrel earlier in November. Last month, oil sands producers asked the Premier to mandate industry-wide production cuts .

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