March Oil Meeting "Unlikely" Say OPEC Sources

OPEC's Gulf members were said to prefer meeting in the first half of April

Organization of the Petroleum Exporting Countries (OPEC) delegates have told media that Iran's determination to regain market share makes it unlikely that a highly-anticipated meeting between oil producers to discuss a production freeze will take place in Russia on March 20.

An unnamed major producer said, "They are not agreeing on the meeting; why would the ministers meet again now?

"Iran says they will not do anything; only if Iran agrees, things will change."

Another OPEC member echoed the contention of some cartel delegates that if talks are held without the support of Iran and other countries, they will end in disarray: "Our view is not to go there with the possibility of no agreement so as not to affect prices negatively."

It was not revealed if the sources quoted belong to the member countries set to participate in the meeting, which are Venezuela, Saudi Arabia, and Qatar.

Yet another delegate told Reuters that OPEC's Gulf members prefer meeting in the first half of April, in Doha or another Gulf city, while a different OPEC source said there will be no major progress on a production freeze until the cartel's next scheduled meeting in June.

Such sentiments have been voiced ever since the proposed meeting was announced last month, and this latest wave comes during a week of volatile market activity spurred by talk of the OPEC meeting as well as concern over the global oil supply.

Accordingly, the idea that the talks won't happen at all impacted the market on Thursday, with Brent crude futures down $1.02 at $40.05 and U.S. crude dropping 45 cents to $37.84 per barrel. 

Only one OPEC source entertained the possibility of a brighter outcome for the talks, noting that a plan might be in the works to get Tehran on board: "If they are willing to find a solution, they should offer a fair deal to Iran."

Iran, meanwhile, is experiencing a lacklustre return to the international market, with some former buyers staying away due to Tehran's inflexibility with prices and terms.