Commenced in Vienna OPEC summit

On the eve of the opening of the summit at the Vienna headquarters of the organization of the newly appointed Minister of energy and industry of Saudi Arabia Khalid al-falih said, according to Riyadh, the oil market is now in a satisfactory condition. According to al-falih, Saudi Arabia does not seek to “shocks” in the oil market, to seek long-term stability and prefers a “soft approach” in energy policy, reports Reuters.

Still a few days before the OPEC summit the participants of the meeting said that during the event you do not plan to return to the question about the freezing of oil production. However, the day before the summit, The Wall Street Journal, citing participants of a closed meeting of OPEC said that Saudi Arabia, because of the position which it had failed in mid-April failed negotiations on freezing the oil in Doha agreed to set a ceiling for production. According to the WSJ, this decision of Riyadh prompted a desire to establish relations with members of the cartel who seek to impose restrictions (Venezuela, Ecuador and Algeria). However, according to the newspaper, now the freeze act against the United Arab Emirates. The UAE does not agree to freeze production at any level, if the same is not going to do Iran.

Iran’s position on the freezing of oil for a month and a half that have passed since the Doha talks, has not changed. On the eve of the summit, the Iranian oil Minister Bijan Zanganeh said that Iran will increase oil production to 4.8 million barrels per day (according to the IEA, the daily production of the Islamic Republic in April amounted to 3.56 million barrels). The day before the meeting, Zanganeh to the question about what he expects from the summit, he replied: “Nothing.”

The main event of the summit could change the Secretary-General of the cartel. In place of the Libyan Abdullah al-Badri claimed by three people: the former head of the Nigerian national petroleum Corporation (NNPC) Mohammed Barkindo, the former head of Venezuelan state monopoly PDVSA, Ali Rodriguez, as well as Mahendra Siregar, the only representative in the cartel’s net oil importer — Indonesia. According to Reuters, more likely to lead OPEC in the Nigerian representative.