The heads of delegations of the 12 oil-producing states have decided at the OPEC 167th Meeting in Vienna to keep their production quotas unchanged. RT will keep you updated on all the latest developments throughout the day.
Oil prices have fallen about 50 percent from their peak of $115 a barrel seen last summer, and an OPEC decision to keep production unchanged is likely to trigger a further oil price slump. Low oil prices mean huge losses for some of the world’s leading oil producers. To show the importance of today’s meeting for oil prices and the global economy, here is an RT infographic:
05 June 2015
Chemical engineer and journalist Rami Eljundi, explained to RT what complexities may lie behind OPEC’s decision to leave the level of oil production unchanged.
OPEC president Diezani Alison-Madueke and OPEC Secretary General Abdalla Salem El-Badri will speak to the press at 4pm GMT.
OPEC's decision not to cut production quotas will keep oil prices at the same level of $60-70 per barrel, “although we would like higher prices,” Gazprom Neft chairman Aleksandr Dyukov said.
— *Russian Market (@russian_market) June 5, 2015
RT’s Daniel Bushell in Vienna reports on what the OPEC decision means for US shale producers, who are facing break-even costs. He interviewed Ryan Lance, CEO at ConocoPhillips.
Iraq is satisfied with OPEC’s decision to leave output unchanged, Iraqi Oil Minister Adel Abdel Mahdi said.
Russian oil major Rosneft has no plans to adjust its 2015 budget, which is based on an oil price of $50 per barrel, after OPEC’s decision, the company said.
— Holger Zschaepitz (@Schuldensuehner) June 5, 2015
OPEC has not discussed Indonesian application to rejoin, said al-Naimi
Indonesia left OPEC in January 2009, after a sharp decline in oil production led to it becoming an oil importer, rather than an exporter.
OPEC leaves output unchanged, the next meeting is scheduled for December 4 - Saudi Arabia Oil Minister Ali al-Naimi.
READ MORE: OPEC leaves output unchanged - Saudi Arabian oil minister
Oil prices won’t fall when Tehran reenters the world market, Iranian Oil Minister Bijan Zanganeh told CNBC.
"I don't believe that we will witness a new fall in the oil price in the market, but the main issue for Iran I should emphasis is to achieve the traditional market share of Iran in the oil market," he said.
OPEC has exceeded its own target of 30 million bpd for 12 straight months. pic.twitter.com/BPQrvz6jUY
— Jonathan Ferro (@FerroTV) June 5, 2015
An application by Indonesia to join OPEC has been unanimously approved by its members.
"The Saudi Arabian government delegation appreciate and fully support the decision of the Indonesian government to become an OPEC member again, because Indonesia is one of the founders of OPEC," said Indonesian Energy Minister Sudirman, confirming support from Saudi Arabia Oil Minister Ali al-Naimi.
OPEC has no objections against accepting new members who share its interests, including Russia, OPEC Secretary General Abdalla Salem El-Badri told RIA Novosti.
“Russia has to decide whether it wants to join OPEC or not, it is not for me to decide. We have no objection to the new [members], if they have the same interests," he said.
Al-Badri said he didn’t know whether the question of Russia joining OPEC would be raised at a meeting between Russia and OPEC on July 30.
Oil prices are "slowly improving, not stabilizing," said Ali al-Naimi, the oil minister of OPEC's most influential member, Saudi Arabia, before the OPEC meeting.
Al-Naimi also said that OPEC would not tell Iran how much oil to produce. Tehran is expected to return to the global oil market after the lifting of international sanctions, if an agreement on its nuclear program is reached by June 30.
"How can OPEC tell Iran how much to produce?” said al-Naimi. “Iran is a member of OPEC. The decision on the production volume is their sovereign right. Iran is free to do whatever it wants."
— Daniel Bushell (@danielb_rt) June 5, 2015
It will take time for the oil price to stabilize, but the decision in November 2014 to keep crude output at the same level was a wise one, said Suahail Mohamed Al Mazrouei, the United Arab Emirates’s oil minister. However, he would not say at what price oil would stabilize, or how long it would take to do so
Lukoil is interested in participating in projects in Iran, and the authorities in Tehran would welcome the Russian company’s investment, Iranian Oil Minister Bijan Zanganeh said.
— Business Insider (@businessinsider) June 4, 2015
"Most of the [OPEC] countries consider $75 a fair price for both producers and consumers," Iranian Oil Minister Bijan Zanganeh told journalists. In six or seven months after sanctions are lifted, Iran could increase oil production by 1 million barrels per day, Zanganeh added.
Iraq does not rule out raising OPEC’s oil production quota, Iraqi Oil Minister Adel Abdel Mahdi said.
While OPEC is meeting in Vienna, a crucial oil production figure will be announced in the United States. At about 5 p.m. GMT, Baker Hughes will publish its weekly US oil drilling rig count, a key indicator of shale production. Last week, the total number of oil and gas drilling rigs in the US fell by 10 units to 875 units, 991 rigs less than a year ago, the oilfield services company said.
RT’s correspondent Daniel Bushell is in Vienna, covering the event. Pierre Noel, a senior fellow on economic and energy security at the International Institute for Strategic Studies, tells RT that Saudi Arabia has been trying to oust US shale production from the market. Saudi Arabia is the only OPEC member that is interested in current oil prices, he added.
Brent crude was trading at $62.08 per barrel at 11:04am MSK Friday, nearly $4 lower than at its Tuesday peak of $66.04.
This week has seen a 5 percent fall in crude prices as most experts expect OPEC to decide against reducing crude output. The information has been indirectly confirmed by senior oil industry figures.
The rationale for the current OPEC policy remains in place, Shell CFO Simon Henry told Bloomberg on Tuesday. Iran's Oil Minister Bijan Zanganeh in turn said that no consensus between all OPEC members on a production cut is likely to be reached.