OPEC is renewing efforts among members and producers from outside the group for a deal to fix an oil glut and boost prices, but it is too early to say whether the attempt will work, OPEC sources said on Wednesday.
Such a deal has been mooted and dismissed for over a year and the lack of any supply restraint by the Organization of the Petroleum Exporting Countries and rivals such as Russia has helped send prices to a 12-year low close to $27 a barrel.
Hopes were raised on Tuesday when Iraq’s oil minister said top OPEC producer Saudi Arabia and Russia were showing new signs of flexibility about agreeing to tackle the oversupply in the market.
And Venezuelan President Nicolas Maduro announced on Tuesday that the country’s oil minister would tour OPEC and non-OPEC countries in a bid to drum up support for joint action.
OPEC delegates, including those from Gulf countries, speaking after Iraq’s comments, said Venezuela’s attempt to get everyone around the table for a deal faced challenges.
“Something is cooking but it might not be done fast. There is communication within OPEC trying to get all sides together,” one OPEC source said. “But the main challenge is Iran and Russia.”
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at email@example.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.