Saudi’s Gesture For OPEC Unity Meets Iran Resistance

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Jumat, 03 Juni 2016

Saudi’s Gesture For OPEC Unity Meets Iran Resistance

Saudi Arabia faces Iran's resistance to proposals to restore a production target scrapped at the last OPEC meeting in December that persistent divisions within the producer group undermined efforts to build unity.

Yet OPEC rivals have adopted a more conciliatory tone in Vienna than in the past, with Riyadh promising not to flood the market and saying Tehran was ready to listen to his counterpart. The diplomatic move is an attempt to repair the divisions that had grown so many OPEC dubbed as death and preserve the rebound in oil prices to about $ 50 a barrel.

"We will be very gentle in our approach, so as not to shock the market anyway," new oil minister of Saudi Arabia, Khalid Al-Falih said before it is sitting with his counterparts in Vienna on Thursday. "We are satisfied with the price movement in the last month and I think it will continue to edge slowly with little intervention, assuming roughly OPEC production remains where he is."

differences between Saudi Arabia and Iran echoes the disappearance of a proposal to freeze production in April. Saudi Arabia made a lot depends on the participation of Iran, which has insisted on its right to increase crude production to pre-sanctions levels. Kuwait has also questioned the need for a production goal, while higher oil prices ease tensions within the group.

"A general quota for OPEC countries without quotas is meaningless," Iranian Oil Minister Bijan Namdar Zanganeh said on Thursday. "It is impossible to control or monitor, and what that means is that everyone can do what they want and just say that it is in sharing."

Zanganeh said a country quota system might be difficult to achieve in today's meeting.

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