«OPEC» Details .. closed meeting lasted 5 hours, Iraq and Iran were with Venezuela front against the Saudi-led Gulf
After a long long meeting between 4 and 5 hours, and the oil ministers of the Organization of the Petroleum Exporting Countries decided (OPEC) to keep everything as it is, the day before yesterday; the 30 million barrels is not changed cartel's production ceiling of a day, and no agreement on a new secretary-general her, but was an extension of the current Secretary of the Libyan Abdullah al-Badri.
But why ministers «OPEC» took all this time to get out of this decision? What house inside a locked room for meetings that are not only 12 ministers and the Secretary General enters?
When he entered the room Minister yesterday there were only 4 agree that «OPEC» must not reduce production, while the 8 remaining determined to cut production, so there became fronts at the meeting, according to what was said by more than one source.
These ministers are 4 and Gulf ministers, led by the Saudi minister Ali al-Naimi, while the other front led the Venezuelan Foreign Minister and former Minister Rafael Ramirez its oil, which was headed his country's delegation to the meeting.
Ramirez opened the debate as narrated sources and tried various ways to convince «OPEC» the need to reduce until prices rise; as the president of Venezuela, Nicolas Maduro believes that the fair price of a barrel is $ 100. Ramirez said the minister, he is able to convince the producers outside «OPEC» join, especially Russia and Mexico.
But the words of Ramirez did not convince al-Naimi, who had previously attended a meeting last Tuesday, two days «OPEC» before the meeting, ministers of energy collected Russia and Mexico under the auspices of Ramirez. And 4 out of the meeting without having to agree to cut their production, but they agreed on the joint coordination and follow the market and prices down.
Naimi said the minister in «OPEC» meeting that after all the years he spent in the oil sector can assure them that he can not rely on countries outside the «OPEC» dramatically if they gave commitments to cut production. There is therefore a high probability that the scheme Venezuela will not work.
Here intervened African countries producing light oil, which is similar to oil shale, such as Algeria, Angola, Nigeria and suggested a proposed compromise, which is that the «OPEC» states a collective reduction of 5 per cent of the total daily production, which more than 30 million barrels per day. This proposal and met with acceptance from everyone except Gulf ministers, who expressed their view Naimi saying that his long experience led him to the conclusion that the surplus when it is outside the «OPEC» the «OPEC» attempts to control prices through production cuts would not be feasible.
This position was expressed by the Minister of the UAE Suhail Al Mazroui and Minister of Kuwait Ali Al-Omair before the start of the meeting. The Minister of Kuwait said in a statement from inside the main hall for «OPEC», the surplus comes mostly from outside the «OPEC», but this must be done to deal with this matter with caution, and should be «OPEC» consider the long-term interests.
The Minister of Iraq, Adel Abdul-Mahdi told reporters after the meeting, said that the proposal to reduce the 5 per cent was the most appropriate for all may contribute if slightly in support prices.
The controversy continued at the meeting after that touched everyone talking about oil shale. In fact, there is a widespread perception in the majority of analysts and the media that Saudi Arabia is seeking to engage in battle with the price of oil shale, but Naimi says that he has a clear line in the petroleum policy, which is to welcome the new production from any source. This was a welcome source of criticism of him from a lot of opponents who believe that welcoming these new sources is what will reduce the market share Kingdom. But Naimi his dissenting opinion, as the global demand for oil will increase, and this requires that producers meet this demand from any source. For Saudi Arabia, this is in their interest, then they do not need to drain the fields or to increase the production capacity of over 12 million barrels per day.
Returning to the «OPEC» meeting Naimi minister has made it clear that the surplus in the market will solve itself and the market moved into balance at the end of the day when the prices were limiting the entry of any new surplus.
But patience Naimi and other ministers of the Gulf will not be shared by the rest of «OPEC» States; as the Gulf states have a high financial reserves of foreign exchange, as they do not need to prices above $ 100 until equivalent budget deficits are not recorded.
And require the majority of «OPEC» Gulf countries except Angola to prices above $ 100, and this is what is difficult to accept their position in the current prices. He says one of the sources in the opposition states in the transfer site 'Middle East' statement: «Saudi Arabia's decision will slay the price, but we will wait to see».
Turning minister to the topics they have on the agenda of the meeting, including the question of the Secretary-General and talks climate and the election of the Chairman of the meeting «OPEC» Conference next year, was elected Minister of Petroleum Nigeria Allison Maduque Desagna as president, the first time in «OPEC» the date in which the chair lady meetings of the Conference. Among other things, the approval of the appointment of the governor of Venezuela in «OPEC» Dr. Bernard Momr as president of the Board of Governors in the next year.
There was a proposal to hold a meeting in Vienna in February to study the market and prices for fear of falling further. But Saudi Arabia and the Gulf states felt that there is no need for a meeting before the next meeting, which was selected in the fifth of June (next June).
After all the push and pull of Ministers went for lunch and then returned to finish the meeting and all agree on the Gulf position one to keep the production ceiling at 30 million barrels to go out afterwards to journalists who Astqublohm a barrage of questions, and the first response of the Al-Naimi, who said: «We have taken a happy decision».
Despite all the differences in views, I respect everyone, including Iranian and Iraqi ministers, and the point of view of Saudi Arabia, the Gulf and proved «OPEC» they united and able to decide which one, as ministers of Venezuela and Kuwait, said after the meeting on their way to the exit. The minister said the Kuwaiti Al-Omair, said that «Unit (OPEC) is more important than anything.»
Iraq, Iran and Venezuela, countries still accept reluctantly «OPEC» decision, especially that prices fell more yesterday, to settle at $ 73. But everyone will wait to see what if Saudi Arabia and the Gulf plan successful or whether it will fail to rid the market of surplus and raise prices and save budgets from drowning.
[You must be registered and logged in to see this link.]