Opec invites Russia to October meeting, eyeing higher crude oil prices

Opec said yesterday it was inviting Russia and other key non-members to a meeting later this month as the oil alliance and Moscow seek to tighten cooperation to boost historically low crude prices.
The announcement came after a meeting in Istanbul between several top Opec energy ministers with their Russian counterpart Alexander Novak aimed at advancing joint efforts to bolster oil prices whose lows have hurt the highly-dependent economies of crude producers.
The meeting took place on the sidelines of the World Energy Congress in Istanbul, which on Monday saw a vow by Russian President Vladimir Putin for Moscow to impose curbs on energy output to match Opec cuts that caused a spurt in oil prices.
“We agreed to have a technical meeting of Opec...on 28-29 of this month (October). An invitation is going to be sent to some key non-Opec countries,” Qatar’s Minister of Energy and Industry HE Dr Mohamed bin Saleh al-Sada said after the talks. “This meeting is meant to give a better understanding of the best way of how to move towards the rebalancing of the market to the interest of all.” Other than Russia, he did not elaborate on what other non-Opec countries were being invited to the meeting but indicated he wanted a wide turnout.
“We have a list of non-Opec countries and we are yet to refine it further. We intend to expand it to get the feelings of as many non-Opec countries as possible,” al-Sada said. He gave no indication, however, the meeting would be attended by the US, the world’s No 3 oil producer. “The US attending is something we cannot assure you of,” he said.
The prospect of Russia, one of the world’s top two oil producers alongside Saudi Arabia, coordinating policy with Opec has boosted global oil markets in the last few days and briefly brought crude to its highest levels for a year.
The Organisation of the Petroleum Exporting Countries had last month at a meeting in Algiers agreed its first production cut in eight years.
Novak confirmed that Russia had been invited to the October meeting in Vienna which would try and “work out a roadmap for the cooperation of our countries” in the rebalancing of prices.
The upcoming talks will be a technical meeting, with the next general meeting of Opec ministers planned for November 30 in Vienna.
Novak had on Tuesday evoked a possible six month freeze of production levels by Russia to match Opec’s own output curbs.
He said that no concrete figures were discussed at the meeting. “As for figures, that is in the future and and I think (at the October meeting) we will discuss more or less concrete parameters.”
Putin said yesterday in Russia that a freeze of production at current levels was in the interest of the Russian economy. “If Opec countries agree a production freeze we will join that decision,” he said, adding the key obstacle was to find agreement between Saudi Arabia and Iran.
The energy ministers of Opec members including UAE Energy Minister Suhail al-Mazroui, al-Sada and Venezuelan Oil Minister Eulogio del Pino all attended the talks in Istanbul hotel chaired by Opec secretary general Mohammed Barkindo.
Of non-Opec countries, Mexico was also represented.
“We are doing our very best now to rebalance the market,” said al-Sada, adding that the current “overhang” in excess supply was holding back much-needed investment.

Opec points to larger 2017 crude surplus
Opec reported a increase in its oil production in September to the highest in at least eight years and raised its forecast for 2017 non-Opec supply growth, pointing to a larger surplus next year despite the group’s deal to cut output.
The Organisation of the Petroleum Exporting Countries pumped 33.39mn bpd last month, according to figures Opec collects from secondary sources, up 220,000 bpd from August, Opec said in a monthly report yesterday.
The figures underline Opec’s challenge in seeking to restrain supplies for the first time since 2008 to curb a persistent supply glut and prop up prices.