• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 38 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 13 hours Could Someone Give Me Insights on the Future of Renewable Energy?
  • 12 hours How Far Have We Really Gotten With Alternative Energy
  • 13 hours "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 3 days Bankruptcy in the Industry
  • 3 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 4 days The United States produced more crude oil than any nation, at any time.
Big Oil May Not Support All Trump 2.0 Policies

Big Oil May Not Support All Trump 2.0 Policies

Trump's two primary campaign promises,…

U.S. Sanctions on Venezuela Snap Back Into Place

U.S. Sanctions on Venezuela Snap Back Into Place

The U.S. has reimposed sanctions…

Oil Price Volatility Soars Amid Geopolitical Uncertainty

Oil Price Volatility Soars Amid Geopolitical Uncertainty

Oil price volatility has climbed…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Premium Content

OPEC Secretary General: No Production Freeze This Month

Opec Barkindo

A few days before the highly anticipated OPEC meeting in Algeria, a top official from the group threw cold water on the possibility of a production freeze.

Expectations for a deal have gone up and down since they were first floated in August, taking oil prices on a volatile ride. Rumors of a possible deal were enough to spark a 20 percent rally in oil prices in August, ending what had become a bear market. Since then, a cavalcade of comments, opinions, and seemingly off the cuff remarks from OPEC officials and oil ministers have fueled market speculation about the possibility of a production freeze.

But the latest comment from OPEC’s Secretary-General is arguably the most definitive to date, and it doesn’t bode well for a production freeze in Algiers. Secretary-General Mohammed Barkindo said over the weekend that the group wouldn’t be making a decision on any limits. “It is an informal meeting, it is not a decision-making meeting,” Barkindo said to Algerian state media.

On the other hand, Venezuelan President Nicolas Maduro said that they were closing in on a deal, which could be announced before the end of the month. "We had a long bilateral meeting with Rouhani. We're close to a deal between OPEC producer countries and non-OPEC," Maduro said at a news conference, referring to a meeting with Iranian President Hassan Rouhani on the sidelines of a summit in Venezuela for the Non-Aligned Movement. Related: What Hubbert Got Wrong About Peak Oil

Venezuela is one of the countries that is most desperate for a deal, so those comments should be taken with a large dose of skepticism.

At the same time, the comments from OPEC’s Secretary-General should also not be taken at face value. Damping down speculation could be a calculated move, lowering expectations for whatever might come from the Algeria meeting.

Nevertheless, if an agreement is to be reached, the most likely scenario is that OPEC and non-OPEC participants agree to some sort of consensus about capping output, but a formal agreement would only come from some future meeting, not from the upcoming gathering in Algeria.

By Charles Kennedy of Oilprice.com

ADVERTISEMENT

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News