- Title: OPEC-MEETING/RUSSIA Saudi, Russia pre-OPEC talks yield no oil output cut
- Date: 25th November 2014
- Summary: VIENNA, AUSTRIA (NOVEMBER 25, 2014) (ORIGINALLY 4:3) (RUSSIAN STATE TV FOR RUSSIAN POOL) ROSNEFT CHIEF EXECUTIVE OFFICER, IGOR SECHIN, WALKING INTO HOTEL
- Embargoed: 10th December 2014 12:00
- Location: Austria
- Country: Austria
- Topics: General
- Reuters ID: LVAABL8JT62LED306QJJVPJTI9EX
- Story Text: EDITORS PLEASE NOTE: THIS EDIT CONTAINS MATERIAL WHICH WAS ORIGINALLY 4:3
Impromptu talks between Saudi Arabia, fellow OPEC member Venezuela and oil powers Russia and Mexico yielded no agreement on Tuesday (November 25) on how to address a growing oil glut, ending without any plan to cut output despite a collapse in prices.
In a day of shuttle diplomacy before OPEC's output meeting in Vienna on Thursday (November 27), energy officials from non-members Russia and Mexico rushed to the Austrian capital to push OPEC kingpin Saudi Arabia on the 30 percent price fall since June.
Saudi has kept the market guessing about its response to crude's fall amid rapidly rising U.S. shale output, but Tuesday's talks had led to speculation in some quarters that Riyadh might back a coordinated cut involving non-OPEC members.
Venezuelan Foreign Minister Rafael Ramirez told reporters after the talks that no coordinated output cuts had been arranged.
"We discussed the situation on the market, we have, we shared our point of view over this situation and we agreed to be, keep in contact and we are going to meet again in three months," said Ramirez, adding "The most important thing is that we are talking between OPEC and non-OPEC countries and now, tomorrow, we will start with bilaterals for our OPEC meeting, in spite of all of this," he said.
Ramirez, who until recently was oil minister and president of state oil company PDVSA, said all sides agreed current prices were "not good" for producing countries.
"We will continue working in this way. Everybody is worried about the price," he said.
Venezuela, a noted price hawk, would try for an output agreement within OPEC on Thursday instead, he said.
Oil prices turned lower after the talks, with international benchmark Brent falling more than $1 a barrel.
Igor Sechin, the head of Russian state oil company Rosneft and a close ally of President Vladimir Putin, arrived in Vienna on Tuesday amid hints that Moscow could cut output or exports if the producer group did the same. Russian Energy Minister Alexander Novak also attended the four-country meeting.
Mexican Energy Minister Pedro Joaquin Coldwell left the meeting before the other participants, without speaking to reporters.
A statement from his ministry later said that Coldwell "brought up the need for dialogue and the exchange of information among key producers in order to foster a better understanding of the fundamentals and development of the oil market, and in this context, the ministers agreed to carry out constant monitoring of international markets and to meet again in February 2015."
Oil market watchers are divided over the outcome of OPEC's Thursday meeting. Predictions range from a large production cut to revive prices, to a small reduction, or none at all.
Current prices are far below what most OPEC members and rival producers such as Russia need to balance their budgets, but the group has struggled to adapt to growing supplies from the U.S. shale boom.
Some analysts say an OPEC cut of as much as 1.5 million barrels per day (bpd) is needed to support oil prices and avoid increasing a supply glut in the first half of 2015.
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