New reports regarding the negotiations oil production levels show that little to no progress has been made. Saudi Arabia reportedly stopped negotiation efforts with non-OPEC nations including Russia, as no agreement on how to proceed with supply cuts seems possible at the moment. The Saudis will not attend highly anticipated talks on Monday with non-OPEC producers. The oil glut is here to stay for now.
Brent crude fell 1.8 percent Friday after the announcement, to $48.13 a barrel.
Among the many disagreements, the question whether or not Iran and Iraq are willing to cut production and share the burden was not resolved. Iran’s leaders continue to insist it should be allowed to restore production to pre-sanctions levels, whatever the effect on the global market will be. And it seems to be unclear where Iraq stands on demands to cut their production levels, but even if Iraq agrees, it will not be enough.
Reuters reported that a Gulf source familiar with Saudi oil thinking said on Friday, “We have to solve our problems as OPEC first. We have not achieved an agreement within OPEC… Before we meet with non-OPEC and ask them to participate in any action, we have to have an agreement that is credible with clear numbers and a system that the market believes."