Can Opec Get Its Act Together Ahead Of Vienna Meeting?

As ever, the build up to the next Opec meeting on 30 November has been dominated by an increasing number of claims and counter-claims from “sources” close to the proceedings. Every day brings further speculation on the intentions, strategies and demands of the Opec countries and non-Opec attendees, ramping up market activity, and muddying the waters in equal measure.

A production agreement appears very much in reach, even if just an agreement to freeze at current levels. Any agreement to cut could take a number of forms. Opec could stick by the terms of the 32.5-33mn b/d target range agreed upon in Algiers in September and allocate agreed-upon individual country quotas (MEES, 11 November). A similar agreement absent country quotas is also a possibility, albeit one that Iran has previously labeled useless (MEES, 3 June). There is also the option of a smaller production cut, potentially to 33-33.5mn b/d. (CONTINUED - 884 WORDS)