EMEA News
Russia Ready to Talk to OPEC, but Iran Doubts Any Policy Change Will Occur
First Russia said it was ready for talks with the Organization of Petroleum Exporting Countries (OPEC); then a Russian spokeswoman this week declared that no such talks were imminent; and now Alexander Novak, energy minister for the country, says the talks are back on again, according to comments quoted by Reuters.
Novak told reporters on December 17 that "We are ready to meet and have confirmed such a possibility.
"But the question is in other countries... if they agree about such meeting."
In November, Novak and Igor Sechin, head of Rosneft, both said a meeting was possible in mid-December between OPEC and non-OPEC producers, in order to try and stabilize the crude oil market.
But on December 14 an unnamed spokeswoman for the Russian energy ministry was quoted by the press as saying that "As of now, no meeting is expected."
Novak did not discuss the apparent u-turn, but other countries have expressed doubt that OPEC members will reach a political consensus that will lead to a production cutback and a market balance.
Bijan Namdar Zangeneh, minister of petroleum for Iran, was quoted by local media as saying during a television interview that "Right now, the member countries are mostly following the political will: it is totally evident in the current conditions while some members use oil as a political leverage.
"It is why I am not so hopeful about solidarity and consensus over market regulation in this organization; nine members of OPEC are on one side and four others are on the other."
As oil producing nations continue to fight for market share, bunker prices in some of the world's key ports have been pushed down to their lowest in over a decade.
Prior to the failed December 4 ministerial talks in Vienna, OPEC published a bulletin stating that while the current oil price regime will not last, stakeholders "have a vested interest" in joining forces to achieve a recovery.
