Wall Street Journal: OPEC Fails to Finalize Proposal to Implement Production Cut
Cartel’s leader says there will be dire consequences for industry if OPEC doesn’t proceed with plan.
VIENNA—A weekend marathon of talks between major oil producers failed to finalize plans to implement an output cut, threatening the viability of an agreement reached last month to reduce production between by as much as 2%.
The discussions held at the headquarters of the Organization of the Petroleum Exporting Countries were supposed to pave the way for a detailed proposal on how to cut production by between 200,000 and 700,000 barrels a day, about 1% to 2%.
The proposal is scheduled to be submitted to OPEC’s 14 member nations on Nov 30.
The talks were also aimed at securing coordinated cuts with producers outside OPEC, such as Russia, the world’s largest oil producer.
Instead, Iraq and Iran’s insistence on exemptions emerged as a big sticking point Friday as those members refused to agree to cut their burgeoning output.
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Update: OPEC Splits Prevent Deal With Other Producers to Curb Supply (Bloomberg)
WNU Editor: All of these OPEC members are hurting .... they want higher oil prices but they cannot agree to production cuts. Hence the collapse in today's talks.