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OPEC
agreed in Algeria on Sept. 28 to limit supply with special
conditions given to Libya, Nigeria and Iran, whose output has
been hit by wars and sanctions. The details are meant to be
finalised when OPEC ministers meet in Vienna on Nov. 30.
With two weeks to go, differences persist over details and the
prospect of a supply glut persisting in 2017 has weighed on oil
prices <LCOc1>, which are below $47 a barrel. Crude reached a
2016 high near $54 after the September deal.
Two sources familiar with discussions said efforts were under
way to narrow gaps and a final agreement would be reached.
"It is difficult at some points but I don't see any deadlock,"
one of the sources said. "What happened in Algeria gave a lot of
hope and impetus and I think people are committed to that."
One issue has been the level of production at which Iran would
be expected to freeze its output.
Sources say Iran wants an output cap of 4 million barrels per
day, while other members of the Organization of the Petroleum
Exporting Countries want Iran to freeze supply at about 3.7
million bpd.
This issue, several OPEC sources told Reuters, was a source of
tension at an Oct. 28 meeting in Vienna of the High Level
Committee, a panel looking at how to divide the Algeria
agreement into individual supply limits.
Other OPEC members are willing to be more flexible on this, two
sources said. One of them said while meeting Iran's demand for 4
million bpd was unlikely, Tehran would probably be offered a
figure of 3.75 million bpd or higher.
"Whatever it takes to reach a consensus will be taken by the
ministers," said a third OPEC source familiar with discussions,
referring to finding a compromise over Iran. "We cannot leave
Vienna on November the 30th without an agreement."
The High Level Committee meets for a second time in Vienna on
Monday, and a number of OPEC ministers are likely to hold talks
informally in Doha on Friday on the sidelines of a gas
conference.
In a further effort to forge consensus, OPEC Secretary-General
Mohammed Barkindo is visiting more OPEC members in the next few
days. He is scheduled to meet Venezuelan President Nicolas
Maduro later on Wednesday, and he then travels to Ecuador and
Iran, a source said.
Barkindo said on Nov. 7 that OPEC was committed to implementing
the deal.
(Additional reporting by Lamine Chikhi; Editing by Dale Hudson)
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