OPEC signals willingness to talk about cutting production to raise prices

OPEC says other producers – such as Russia – will have to share in lower production

OPEC appears to have blinked in the global oil price war. The Saudi-led cartel appears read to talk to other producers about prices, according to an article in an OPEC publication issued on Monday.

“Today’s continuing pressure on prices, brought about by higher crude production, coupled with market speculation, remains a cause for concern for OPEC and its members — indeed for all stakeholders in the industry,” the commentary in the latest OPEC Bulletin said.

After calls for an emergency meeting by Algeria and pleas by Venezuela for OPEC to open talks with Russia all failed in the past week, the Organization of the Petroleum Exporting Countries may finally have signal its openness for dialogue with other producers.

“As the Organization has stressed on numerous occasions, it stands ready to talk to all other producers. But this has to be on a level playing field. OPEC will protect its own interests,” the article said.

Russia has refused to cut it own supply and Saudi Arabia has thus far stood firm on its intention to preserve market share.

 “OPEC, as always, will continue to do all in its power to create the right enabling environment for the oil market to achieve equilibrium with fair and reasonable prices.”

 

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