Disputes emerge as oil majors prepare to discuss prices

As the world’s biggest oil producers are preparing to meet next week to discuss production and market prices, some early signs show differences could prevent them from sealing a new deal to reduce output and boost prices.

Khalid al-Falih, the energy minister of Saudi Arabia – the biggest producer inside the Organization of the Petroleum Exporting Countries (OPEC) – said on Wednesday that his country would not cut oil output on its own to stabilize the market.

Al-Falih’s remarks came as peer OPEC producer Nigeria said it was too early to signal whether it would take part in any production curbs.  

The negative economic backdrop helped push oil prices below $60 per barrel this week from as high as $85 in October, prompting OPEC’s de facto leader, Saudi Arabia, to suggest significant production cuts, Reuters reported.

However, Riyadh has come under renewed pressure from US President Donald Trump, who asked the kingdom to refrain from output reductions and help lower oil prices further.

Possibly complicating further any Saudi decision on oil output is the crisis around the killing of journalist Jamal Khashoggi at Riyadh’s consulate in Istanbul last month. Trump has backed Saudi Crown Prince Mohammed bin Salman despite calls from many US politicians to impose stiff sanctions on Riyadh.

Earlier, Bloomberg quoted informed sources as saying that Saudi oil production had reached an all-time production level of 11.2 million barrels per day in what was seen as the result of a positive response by Riyadh to US calls to pump more and help drive prices lower.

The Organization would host a meeting with other producers led by Russia in Vienna next week amid concerns over a slowing global economy and rising oil supplies from the United States, which is not involved in an existing agreement to restrain output.

SS