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What does the next OPEC meeting have in store?

By Rakesh Upadhyay - posted Monday, 23 May 2016


Mr. Zamaninia said Iran disapproves of increased politicization of the OPEC. "In the Southern Persian Gulf, oil is becoming a political commodity, more than an economic commodity," he said. "OPEC is in a difficult situation."

He said that without solutions to the conflicts in Syria and Yemen, an agreement is unlikely.

The relations between the two warring nations have reached a new low, with Iran refusing participation in the Hajj pilgrimage. The negotiations between the delegates of the two nations ended in conflict.

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Considering the existing tensions between Iran and Saudi Arabia, if the OPEC meeting ends without a fight, it should be considered an achievement.

The proposal by the Kuwaiti deputy foreign minister Khaled Jarallah for the member nations to freeze production is a feeble attempt to support prices.

"It is clear that Mohammed bin Salman wants to confront Iran not just in the Middle East but in the energy markets," Amir Handjani, a member of the Board of Directors of the Dubai-based RAK Petroleum, told RT. He said that it was unlikely that Prince Salman will back down now. "And certainly the Iranians are not going to back down either," reports Hellenic Shipping News.

While these two nations continue their slugfest in the OPEC meeting, the smaller nations have no choice but to remain mute spectators, dreaming of their glory days.
 

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This article was first published on OilPrice.com.



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Rakesh Upadhyay writes for OilPrice.com.

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