28 Mar 2024
Wednesday 20 April 2016 - 18:08
Story Code : 210496

Lack of deal on oil output freeze may trigger price drop to $25 - Minister

Oil prices may plummet to as low as $25 per barrel following the failure of oil producers to agree on production freezes during a recent meeting in Doha, Venezuelan Oil Minister Eulogio del Pino told Sputnik on Wednesday.

MOSCOW (Sputnik) On Sunday, major oil-producing countries failed toreach an agreement inthe Qatari capital ofDoha tomaintain output atJanuary levels. The news triggered a sharp drop ofabout 4 percent in oil prices.

"And when we are going tobe [Organization ofthe Petroleum Exporting Countries (OPEC) meeting] inJune <> let's see what happens if the price is inthe order of $25 to $30, how those discussions are going tobe held. It's going tobe completely different," del Pino said atthe oil and gas conference inMoscow, commenting onthe lack ofagreement.

Global oil prices plunged from $115 toless than $30 per barrel betweenJune 2014 and January 2016, hitting their lowest levels since2003 amidan ongoing glut inglobal oil supply.

On Sunday, the world's major oil-producing countries, including both Organization ofthe Petroleum Exporting Countries (OPEC) members and non-cartel states, failed toreach an agreement inthe Qatari capital ofDoha tomaintain output atcurrent levels. Saudi Arabia cited Irans absence fromthe talks asthe reason it could not support an output freeze.

Venezuela is ready towork withboth Saudi Arabia and Iran, aswell asother oil producing states, followingthe failure toreach an agreement onoil production freezes, Oil Minister Eulogio del Pino told Sputnik onTuesday.

"We are very open totalk tothem <> When I did my visit atthe end ofJanuary toeach countries [I was] trying tofind some ways that everyone can talk," del Pino said atthe oil and gas conference inMoscow, answering a question onwhether Venezuela was ready tonegotiate withIran and Saudi Arabia.

The minister noted that the Doha meeting was very political, and some factors emerged atthe last minute changing Saudi Arabias position onfreezing oil output.

"We are going tocontinue working toreestablish the communication and the coordination atthe OPEC and non-OPEC toequilibrate the prices," del Pino added.

In February, the energy ministers ofSaudi Arabia, Qatar, Venezuela and Russia addressed the oil market situation inDoha and agreed tofreeze oil production atJanuary levels if other countries followed suit.

Relations betweenthe Saudi kingdom and Iran have been strained sinceearly January when Riyadh severed diplomatic ties withTehran overan attack onits embassy and consulate followingthe execution ofa prominent Shia cleric.

By Sputnik News
https://theiranproject.com/vdcb9gb50rhb8ap.4eur.html
Your Name
Your Email Address