Key members of the Organization of Petroleum Exporting Countries, OPEC, intend to meet with other producers in Russia on March 20 to renew talks on an agreement to cap oil output, Nigeria’s petroleum minister said.
There will be a “dramatic price movement” when the meeting takes place, Nigerian Minister of State for Petroleum Resources Emmanuel Kachikwu said at a conference in Abuja, Nigeria’s capital, on Thursday. Saudi Arabia, Russia, Qatar and Venezuela agreed on Feb. 16 in Doha that they would freeze production, if other producers followed suit, in an effort to tackle the global oversupply.
“Both the Saudis and the Russians, everybody is coming back to the table,” Kachikwu said, adding that producers generally seek a recovery in the crude price to $50 a barrel.
Oil traded near an eight-week high Thursday of about $34 a barrel in New York as the Doha accord fanned speculation that co-operation between OPEC and Russia could at least prevent the current supply glut from expanding. Still, analysts have said that freezing production will do little to reduce the surplus, especially as Iran — which intends to increase exports following the end of international sanctions — dismissed the proposal as “ridiculous.”
Kachikwu didn’t specify whether Iran would attend the planned talks. Read more