The Minister of energy, industry and mineral resources of Saudi Arabia Khaled bin Abdul Aziz al-Faleh considers the balancing of oil prices at the current level comfortable. In other words, growth in oil prices is not worth waiting, as soon fell would demand.

Khaled al-Faleh confirmed that an informal meeting of OPEC, which takes place on Wednesday in the framework of the International energy forum in Algeria will not end in any formal agreement. Such an agreement, he said, can be achieved at planned session of the OPEC on November 30 in Vienna, reports TASS.

Balancing will continue and accelerate in the case of an agreement to freeze oil production at current levels. The most comfortable option for us right now would be some kind of price range. I wish it was a narrow range. I can’t say what exactly, but probably somewhere between the levels that we see now,” said al-Faleh.
According to the Minister, the price of oil should ever be increased, but this growth should not be explosive.

On Wednesday morning, the Saudi Minister has said that on the last day of the International energy forum in Algeria, there are no agreements between oil-producing countries will not.

“The gap between the OPEC countries is increasing. I don’t expect any agreement for consultations”, – said the Minister.

This statement has crossed all the previous news and rumors, which were called positive.

On the other hand, his statement is fully consistent with the skeptics who previously believed that OPEC will not be able to agree now that the country is not ready for any agreement.

Al-Faleh confirmed the belief that Iran, Libya and Nigeria will continue to increase production, and the indicators reached the highest levels in recent history.

We will note, yesterday the Minister of energy of Russia Alexander Novak acknowledged that final decisions on an informal OPEC meeting in Algeria on September 28, most likely, will not be accepted, even if the parties come to a consensus. He told reporters on the sidelines of an energy forum in Algeria.

“Today we have heard statements by Ministers that they do not expect tomorrow’s decision-making. Tomorrow there will be consultations and exchange of views. Maybe even there was consensus, develop a common approach. But, as I understand it, Custody is required to hold a formal meeting in order to secure some solutions. So tomorrow will be the formal solutions exact. To be clear, what was discussed and what the opinion of the country converge in the majority,” he said.

The previous meeting on the question of freezing of oil production, which was attended by 18 countries, was held on 17 April in the Qatari capital Doha. Then they failed to agree because of the position of Tehran, which is directly in front of the summit refused to participate in negotiations.

According to the International energy Agency, from may to September the effect of the declining oil production in countries outside OPEC, is almost completely offset by a record production of cartel participants due to the high production in Saudi Arabia, Kuwait and the UAE, as well as increasing production Iran after the lifting of sanctions.

Informal OPEC meeting led to the agreement on the freezing of oil production 28.09.2016

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