OPEC and allies agree to share oil production increase

OPEC and allies agree to share oil production increase

But a Friday OPEC decision aims to cut oil prices around the world.

U.S. President Donald Trump was among those wondering how much more oil OPEC will deliver.

How that translates into effective production increases is uncertain, as some OPEC countries can not easily ramp up production. Trump wrote on Twitter after OPEC announced its Friday decision.

Oil markets weren't calmed by the agreement announced Friday by the Organization of the Petroleum Exporting Countries after a contentious week of meetings. In reality, ministers said several countries are unable to pump more so the real output boost would have been smaller - ranging from Iran's 500,000 barrel-a-day estimate up to Iraq's prediction for as much as 800,000.

On Thursday evening, a deal looked to be slipping away after Iranian Oil Minister Bijan Namdar Zanganeh walked out of a meeting with fellow ministers, predicting nobody could persuade him to back an increase.

OPEC sources also said Iran had demanded that USA sanctions be mentioned in the group's post-meeting communiqué.

OPEC agreed with Russian Federation and other oil-producing allies on Saturday to raise output from July, with Saudi Arabia pledging a "measurable" supply boost but giving no specific numbers.

Saudi Arabia said the sides had informally agreed to boost production by 1 million barrels of oil that would be divided between the producers. Furthermore, OPEC is not expected to actually release a hard target, but many traders expect the real figure to remain well-below the 1.8 million barrels already being removed from the market.

With oil prices hitting $80 a barrel last month for the first time in three years, Novak said the market needed to be rebalanced.

Harry Kane: 'It's all coming together for England' after Panama rout
Live: Coverage across BBC TV, BBC Radio and BBC Sport website with further coverage on Red Button, Connected TVs and mobile app. It's not every time you go through after two games, so we're happy with that".

Turkish Election Tests Erdogan's Power
As he runs Turkey under a state of emergency crackdown imposed after a failed coup in 2016, Mr. Ince promised voters an independent judiciary that he said would stabilise the economy.

Prince Louis' christening to be held at Chapel Royal on July 9
Add Royal Family as an interest to stay up to date on the latest Royal Family news, video, and analysis from ABC News. On Saturday, Prince Harry and Meghan Markle were spotted at Celia McCorquodale and George Woodhouse's nuptials.

On Friday, every minister seemed to have his own interpretation of what the hike meant for the market. Intent enough to raise oil production to keep the agreement in place.

This came in a statement issued at the end of the 4th Opec and non-Opec Ministerial Meeting, which was held and concluded in Vienna, Austria yesterday (January 23), reported Emirates news agency Wam.

"There isn't a lot of spare capacity in the world".

"At this stage the 1 million is quite rational", he told reporters after arriving in Vienna, where OPEC is headquartered.

M K Surana, Chairman at Managing Director at Hindustan Petroleum (HPCL), the country's third largest fuel retailer told ETEnergyWorld that any increased supply will be good for India as it will bring some stability in crude oil prices.

"We want to prevent the shortage and the squeeze that we saw in 2007-2008", Falih said, referring to a time when oil rallied close to $150 per barrel. "The aim of the deal is to return total compliance to the current output agreement to 100%".

Importantly, the 100 per cent compliance target is for the group as a whole, not for individual members.

Iran has objected to having members with additional capacity such as Saudi Arabia fill Venezuelan output gaps. Hence it compromised, creating a win-win situation for both the groups within Opec. Much will depend on how much extra crude comes back on to the market, the robustness of American shale drillers, the fate of Venezuela's crisis-hit oil industry and the impact of USA sanctions on Iran.

"With the looming threat of an Iran walkout, the best you could get was deliberate ambiguity", said Helima Croft, global head of commodity strategy at RBC Capital Markets.

Related Articles

  • Supreme Court Rules In Internet Sales Tax Case

    Supreme Court Rules In Internet Sales Tax Case

    President Trump called the decision a "big victory for fairness" in a tweet posted Thursday afternoon. It also impacts Amazon , but only for the goods it sells from third-party merchants.
    Trump Signs Executive Order to Jail Immigrant Families Together, Without Limit

    Trump Signs Executive Order to Jail Immigrant Families Together, Without Limit

    But for now they will no longer have their children taken away from them - families will instead be held together in custody. The first lady took a tour of Upbring New Hope Children's shelter, which cares for 58 children ages 5 to 17.
    More than $30 million in cryptocurrencies stolen

    More than $30 million in cryptocurrencies stolen

    The rest of Bithumbs' assets have been transferred to a cold wallet, a storage that's entirely disconnected from the internet. Bitcoin (virtual currency) coins placed on Dollar banknotes are seen in this illustration picture, November 6, 2017.
  • Iran: OPEC should stick to its production limits

    Iran: OPEC should stick to its production limits

    Saudi Arabia's oil minister said the OPEC ministers will discuss a proposal to increase output by about 1 million barrels per day. Zanganeh said that Iran would try to maintain its export levels in the face of USA sanctions.
    Priest Slaps Baby Across The Face In The Middle Of Baptism

    Priest Slaps Baby Across The Face In The Middle Of Baptism

    Dozens of comments have been left below the original video expressing dismay at the priest's actions. And then, I'll kiss the lil' kid - because he'll have become a little Christian.
    Iceland vs Nigeria LIVE on SBS

    Iceland vs Nigeria LIVE on SBS

    Their captain Aron Gunnarson is just in time to recover from an injury and will add much needed experience in the midfield. Iceland are one of the best around at setting up not to be beaten - but they'll need to go out and win this match.
  • Tom Holland Reveals Title of Next Spider-Man Movie!

    Tom Holland Reveals Title of Next Spider-Man Movie!

    In a short video from his Instagram and later confirmed from a fan video at ACE ComicCon, the title of the next "Spider-Man" movie will be.
    Trump threatens U.S.  tariff on European Union  auto  imports

    Trump threatens U.S. tariff on European Union auto imports

    Within hours, Trump responded with a threat to impose a 20 percent tariff on cars imported from the European Union. The European Union, Canada, Mexico, and India are outraged and have retaliated by imposing tariffs on USA goods.
    China says new tariffs are an act of 'blackmail'

    China says new tariffs are an act of 'blackmail'

    Oil prices too dipped as investors anxious that the dispute would damage economic growth. Chinese stocks recorded their steepest falls since the trade dispute started on Tuesday.
  • Driving change: Saudis end ban on women behind wheel

    Driving change: Saudis end ban on women behind wheel

    She is responsible for the creation of strategies to promote the education and training of women in motor sport in Saudi Arabia . Saudi Arabia is among the most conservative countries in the world and women have traditionally had much fewer rights than men.
    Apple Finally Admits to MacBook Keyboard Design Flaw

    Apple Finally Admits to MacBook Keyboard Design Flaw

    Apple forums are overflowing with reports of Geniuses who have told customers that Apple is "collecting data" on the issue. Well, in 2015 Apple switched to thin "Butterfly" switches for the both MacBook and Macbook Pro lines of laptops.
    Dele Alli out for England against Panama as Gareth Southgate reveals squad

    Dele Alli out for England against Panama as Gareth Southgate reveals squad

    Just over a week into the World Cup and we have a tremor. "But given that it was just a squad list, it doesn't really make any difference to us really".