Saudis Leave Istanbul With Russia Pledge, OPEC Disputes to Solve
OPEC Secretary-General Mohammed Barkindo showed confidence in Russia’s commitment to helping limit oil production despite the group’s internal disputes standing in the way of a global deal. In an interview with Bloomberg television in Istanbul, Barkindo stated, “We are confident of Russia’s commitments, momentum is on our side.”
Russian President Vladimir Putin announced on Monday that they are ready to join the Organization of Petroleum Exporting Countries in limiting oil production through either a freeze or cut as a way to end a two-year supply glut. With benchmark Brent crude trading at about $52 a barrel — less than half its price in mid-2014 — producers remain under severe economic pressure.
Leaders from the largest oil-producing nations gathered in Turkey this week to discuss ways to improve the oil market. While Saudi Arabia’s Energy & Industry Minister, Khalid Al-Falih, left Turkey before the scheduled talks between OPEC producers and other nations outside the group, he reiterated his commitment along with his Russian counterpart Alexander Novak who plan to meet again for further consultation later this month.
OPEC is current dealing with internal disagreements centering around secondary sources or average crude-production estimates from news organizations and other forecasters, with some arguing the estimates are too low.
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