• 5 minutes Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 8 minutes What Can Bring Oil Down to $20?
  • 14 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 1 hour Alberta govt to construct another WCS processing refinery
  • 6 hours Let's Just Block the Sun, Shall We?
  • 5 mins U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 hours Venezuela continues to sink in misery
  • 17 hours OPEC Cuts Deep to Save Cartel
  • 3 hours Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 21 hours $867 billion farm bill passed
  • 1 day Contradictory: Euro Zone Takes Step To Deeper Integration, Key Issues Unresolved
  • 2 days Sleeping Hydrocarbon Giant
  • 1 day WTO So Set Up Panels To Rule On U.S. Tariff Disputes
  • 19 hours Global Economy-Bad Days Are coming
  • 21 hours Regular Gas dropped to $2.21 per gallon today
  • 22 hours IEA Sees Global Oil Supply Tightening More Quickly In 2019
Alt Text

The Next Big Development In Offshore Oil & Gas

German tech company Siemens announced…

Charles Kennedy

Charles Kennedy

Charles is a writer for Oilprice.com

More Info

Trending Discussions

OPEC Secretary General: No Production Freeze This Month

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

More Top Reads From Oilprice.com:




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News