The OPEC gathering will debate an oil output cut of 4 to 4.5 per cent for all of its members, except Libya and Nigeria, next week but the deal's success hinges on an agreement from Iraq and Iran, which may not give a full backing, three OPEC sources said Tuesday. "We expect OPEC will reach an agreement at next week's biannual meeting in Vienna".
Reuters reported that OPEC members will debate an output cut of 1.2 million barrels a day, but Iran, Iraq and Indonesia have shown reservations to such proposal. The matter will be deferred until the ministerial meeting on November 30, two delegates said.
Analysts said the market would remain sensitive to comments from officials attending a technical meeting of the Organization of the Petroleum Exporting Countries (OPEC), which was trying to hammer out the details of an agreement before the formal meeting on November 30.
As at 23.40 Astana time the price of January futures for North Sea petroleum mix of mark Brent decreased by 1.06 percent - to 48.38 dollars per barrel. That is more than 1.1 million barrels a day below OPEC's October output and at the top end of a range of cuts the cartel promised in September.
Moreover, oil markets could move later Wednesday on updated USA inventory data from the Energy Information Administration. US West Texas Intermediate (WTI) crude rose nine cents to US$48.05.
Oil trading was static early on Friday as uncertainty ahead of a planned OPEC-led crude production cut and thin liquidity after the U.S. Thanksgiving holiday kept traders from taking big new positions. OPEC believes that the real production figure was less than 4.5 million barrels per day.
During Thursday's European session there were reports that OPEC could propose a cut for non-OPEC members of 500,000 or 800,000 bpd, although Russian Energy Minister Novak stated that he had not heard about these proposals. The country wants OPEC to reduce production by a total of 900,000 barrels a day when it meets next week in Vienna because the crude-market rout is hurting global investment in the industry, the premier said.
Second, there are still more than 5,000 drilled but uncompleted (DUCs) in the US that could be brought into service relatively quickly to make up any shortfall in OPEC supply.
Doubts weighed over whether Saudi Arabia and Iran could put their geopolitical disputes aside and whether countries whose finances are in dire straits due to low oil prices would resist the urge to pump crude at high rates.