Opec+ proposes mid-July meeting on output plans amid dispute over dates

Opecproposed mid-July meetings with its allies in Vienna to discussextending production cuts, after talks between Russia and Iran made someprogress toward resolving a standoff over the date.The oilproducers group, which pumps more than half the world’s crude, has beenbickering for a month about the timing of ministerial talks. Theirfailure to agree a date just weeks before their production cuts expiregives turbulent markets little reassurance as crude prices extend theirslump.After discussions with his Russian counterpart on Monday,Iran’s Oil Minister Bijan Namdar Zanganeh said he was willing to hold ameeting on July 10 to 12, a week later than most other members hadwanted. The Organization of Petroleum Exporting Countries formallyproposed those dates to members yesterday and said it would await theirresponses, according to a delegate from the group.While this marked a small victory for Zanganeh, Iran had to drop its previous insistence that Opec should gather next week.“Idon’t have a problem with July 10 to 12,” Zanganeh told reporters inTehran on Monday. “I cannot meet 3rd or 4th of July. It’s not that I’mopposed to it, I can’t meet then.”Five delegates from the group, whoasked not to be named while discussing internal deliberations, said onMonday that they weren’t certain that Iran’s proposal would be acceptedby other members.Russian Energy Minister Alexander Novak said he isready to consider holding the meeting on July 10 to 12, but hasn’t yetdiscussed the dates with his Saudi counterpart Khalid al-Falih,according to reports from Interfax and RIA Novosti.The originalrequest to shift the date of the meeting from June to July came fromRussia, which despite being an outsider has exerted a strong influenceover the group since joining forces almost three years ago.Differencesover the timing began as a mere scheduling clash, but escalated rapidlyinto a diplomatic spat that pitted long-standing regional rivals SaudiArabia and Iran against each other. The dispute played out amid abroader geopolitical confrontation as the Saudis – and the US – accusedIran of complicity in attacks on two oil tankers near the Strait ofHormuz on June 13. Iran, which is under US sanctions, deniedculpability.Algeria, like Iran, initially opposed pushing themeeting to July, saying the new date would conflict with a plannedelection in the North African country. The Algerians later cancelledtheir July 4 vote, leaving Iran as the sole holdout against therescheduled meeting.Zanganeh, when asked about Russian ministerNovak‘s response to his proposal for July 10-12, said: “He’s not thedecision maker, the decision maker is Opec and Opec must reach aconsensus.” Novak left the meeting in Tehran without speaking toreporters.For all the uncertainty over the meeting date, Opec andits allies appear to be heading for an extension of their productioncuts amid doubts about the strength of global demand as the economyshows signs of slowing. “There will not be room for the cartel toincrease output for the rest of 2019 in our view,” Rystad Energy’s chiefoil market analyst Bjornar Tonhaugen said in a note yesterday. “Asnon-Opec+ adds more supply than global demand is increasing by, Opec+will still be pressured to manage production in order to balance theglobal market.”