OPEC meeting in Vienna kickstarts today: Here's what you can expect

Nigeria, S-Arabia, others disagree over oil supply

Nigeria, S-Arabia, others disagree over oil supply

Tehran is concerned that an increased supply of crude on the market would make it easier for the USA to pressure allies to support a ban of Iranian oil similar to the one imposed under the Obama administration.

"Globally, crude prices have gone beyond the threshold, which can be sustained by the world, particularly countries like India, which is a key driver of world economy", Mr. Pradhan said at an OPEC conference in Vienna.

Falih also said the real increase would be smaller than the nominal gain of 1 million bpd, meaning a compromise with Iran remained possible.

The kingdom's plan involves a complex calculation based on how much the group has cut production beyond the initial target of 1.8 million barrels a day set in 2016, said delegates, asking not be named discussing private meetings. However, because most countries can't increase production, that would probably translate to just 600,000 barrels coming back on to the market - an increase in global production of about 0.5 per cent.

Global benchmark Brent crude fell more than 2 per cent on Thursday ahead of a meeting of the Organization of the Petroleum Exporting Countries, where producers were expected to boost output to stabilize prices. The proposal has yet to win the backing of all OPEC members, and may meet resistance from more hawkish countries in the group including Venezuela and Algeria as well as Iran.

"Iraq is trying very hard to narrow the gap between the two blocs".

"Essner is betting that the Vienna meeting will yield an agreement to boost production by 500,000 to 800,000 barrels a day, far below the 1.5 million barrel figure floated recently by Russia's oil minister, Alexander Novak".

It showed that many nations have been lobbying behind the scene to enable them have their ways due to strong pressure from major consuming nations, especially the United States and China that prefer increased supply and lower prices.

"While we are not in favour of prices as low as $30 per barrel, we also do not support the prevailing high price which dent our fiscal balance and undermine our development process", Mr. Pradhan added.

Falih has warned the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018 and that OPEC's responsibility was to address consumers' worries. "One thing you can be assured of is: we will be responsive, we will release supplies to make sure there's no shortage".

-With assistance from Salma El Wardany, Annmarie Hordern, Manus Cranny, Elena Mazneva, Laura Hurst, Javier Blas, Grant Smith, Francois de Beaupuy and Golnar Motevalli. To contact the reporters on this story: Wael Mahdi in Kuwait at wmahdi@bloomberg.net; Grant Smith in London at gsmith52@bloomberg.net; Javier Blas in Vienna at jblas3@bloomberg.net. All comments are subject to editorial review.

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