EMEA News
Crude Up Again On Iran Declaring Participation In Algeria Freeze Talks
No sooner did prices drop on Wednesday than they climbed again - albeit modestly, by 1 percent - on Thursday with the news that Bijan Namdar Zanganeh, oil minister for Iran, will participate in the Organization of the Petroleum Exporting Countries' (OPEC) informal freeze talks in Algeria next month.
WTI settled at $47.33 compared to $46.77 just 24 hours prior, and Brent settled at $49.67, up 62 cents.
After an early morning slump, the uptick was attributed to Zanganeh stating to his ministry's news service Shana that "I will participate in this meeting," even though he didn't comment on what position his country will take during the talks.
Despite this flimsiest of drivers, Bob Yawger, director of the futures division at Mizuho Securities USA Inc., declared, "The news about the Iranian oil minister heading to Algiers is bullish; this increases the likelihood of an agreement to freeze production.
"It would be a freeze at very high levels, but the market still would take that as bullish."
Once again, Saudi Arabia contributed to the excitement, with Khalid Al-Falih, the kingdom's energy minister, remarking that "We will be willing to listen to our colleagues, what they have to offer in that area."
However, he added, "I don't believe that an intervention of significance is required; I certainly don't advocate a cut" - and a substantial cut is something the more level-headed observers insist is necessary in order to help rebalance the global market.
Earlier this week, Mohammad Javad Zarif, foreign minister for Iran, discussed with Ecuador ways the two countries can strengthen prices; but apart from stating the two countries will continue the dialogue at OPEC's Algeria meeting, he refused to provide details.
Iran has steadfastly refused to consider any policy that would detract from its meteoric return to the international market, but now that the Islamic republic is approaching pre-sanction levels of output and export, there is worry that its shaky economy and other factors will stall a complete comeback.
For example, Mohammad Saeednejad, managing director for Iran's Ports and Maritime Organization, said this week that annual bunkering capacity has risen 33 percent since the lifting of sanctions but more investment in the sector is needed if it is to compete internationally.
