The forthcoming meeting between OPEC in addition to non-OPEC oil producers, including Russia, could be one of the most fractious in recent years with competing interests in addition to demands at play, according to oil market experts.
OPEC’s production policy will dominate the agenda when the earth’s major oil producers meet in Vienna on June 22, with arguments expected over whether to boost production or maintain supply as the idea is actually.
Saudi Arabia in addition to Russia are reportedly ready to boost oil output while others like Iran in addition to Iraq are against such a move. As such, the discussions might not be pretty, the head of commodity research at Commerzbank told CNBC Thursday.
“the idea might be one of the worst OPEC meetings since 2011,” Eugen Weinberg told CNBC’s “Squawk Box Europe,” explaining that will the differences in opinion over production could cause problems.
An OPEC meeting in 2011 was marked by infighting between members in addition to disagreements over whether to tackle high oil prices (then around $118 a barrel) by increasing production. Gulf states wanted to boost supply to ease prices although were outnumbered by additional OPEC members, including Iran in addition to Venezuela, that will wanted to maintain supply levels. At the time, Saudi Arabia described the summit as “one of the worst meetings we have ever had.”
Weinberg said OPEC would likely try to find a solution This particular time although the idea might not be so simple.
“I think OPEC will try to somehow moderate the current situation although the idea will be very difficult given their opposite sides in addition to the huge difference in addition to the divergence inside views via the countries with no spare capacity like Iran in addition to Iraq on one side who are pushing for no production increase in addition to the others like Russia in addition to Saudi Arabia in addition to Kuwait who have more spare capacity in addition to are wishing to boost production on the additional side,” he said.
“Whether an agreement will be possible in This particular situation is actually questionable,” he added.