The Organization of the Petroleum Exporting Countries could revive talk of freezing oil production along with nonmembers at its next meeting in June, the cartel’s secretary-general and a top Saudi oil official said Thursday.
OPEC is “still alive” as a force in the oil market, said its top official, Abdallah Salem el-Badri. The cartel’s ability to help regulate oil supplies by limiting production may be a topic of debate when the energy ministers of the 13-nation group convene in Vienna on June 2, said Ibrahim Muhanna, a top adviser in the Saudi Arabian oil ministry.
“The door for future cooperation remains open and I am sure we will discuss it in June,” Mr. Muhanna said.
OPEC nations and nonmembers like Russia failed to agree Sunday on production limits that they hoped would help bring the global oil supply back in line with demand and raise prices. Saudi Arabian officials scuttled the deal at the last minute, saying Iran also had to constrain its output. Iran had refused because it is trying to regain market share after years of Western sanctions crippled its economy and oil industry.
Mr. Badri said the West African nation of Gabon had requested OPEC membership. With production at about 240,000 barrels a day, according to the U.S. Energy Information Administration, Gabon would be OPEC’s smallest member if admitted.
Mr. Badri said the current glut of oil that has been weighing down prices would balance out with demand by 2017.
Source: Wall Street Journal
