Saudis Said Not to Expect Decision at Algiers Oil Meetingby
Oil producer doesn’t expect a decision on supply management
Oil price falls $1 following the delegate’s comments
Saudi Arabia, the world’s biggest oil exporter, expects a meeting of key producers in Algiers next week to be a chance to consult rather than take a decision on output levels, an OPEC delegate familiar with the nation’s oil policies said.
Nonetheless, Riyadh will work with other member countries to stabilize the oil market in the run up to the group’s next official gathering in Vienna in November, the delegate said, asking not to be identified because the matter is private. At a meeting in Vienna this week, Saudi officials made a proposal to their Iranian counterparts to lower the kingdom’s production in exchange for Tehran agreeing to freeze its own output at current levels.
While the talks ended without a deal, Saudi Arabia sees the run up to the OPEC meeting in November as a time for more discussion. The kingdom wants higher oil prices to encourage investment in the energy industry, the person said. The International Energy Agency has warned the energy industry may cut spending for a third straight year in 2017.
Oil traded in London fell after the comments, which make the chances of immediate supply-management more remote. Brent slumped 3.3 percent to an intraday low of $46.26 a barrel.
Officials from Organization of Petroleum Exporting Countries and Russia are gathering in Algiers on Sept. 27 and Sept. 28, contending with the most enduring surplus in a generation.