With prices of oil having stabilized at $65 more or less per barrel, at some $20 higher that the lows in January, OPEC has little interest to modify the limits on production or to address the request by Iran to give it additional room in the market, as its sanctions are eased.
There is consensus amongst the OPEC Gulf countries as well as others to maintain the ceiling, said one Gulf OPEC delegate late Tuesday after one of the informal meetings of the four core OPEC Gulf Arab members earlier on Tuesday.
Adel Abdel Mahdi the oil minister of Iraq said optimism existed and there was a general acceptance with what was currently taking place.
On Friday, OPEC meets following a seminar of two-days featuring the CEOs of the biggest energy groups in the world including Exxon and BP., companies whose fortunes were altered abruptly by the decision of OPEC to abandon efforts to sustain the prices of oil at over $100 per barrel, in favor of defending its market share.
Nobody wants to create a problem, said one source so the meeting should be smooth sailing. Abdullah al-Bardi the Secretary General of OPEC said that the meeting would likely be very brief, as everything is already very clear.
That is a big change from the tone at the last meeting of OPEC during November of 2014, when Venezuela and other nations unsuccessfully attempted to convince Saudi Arabia and its allies in the Gulf to tighten the supply taps.
Instead, the Saudis announced their laissez faire idea, saying they would no longer consider lowering output without the non-OPEC producers like Russia cooperating.
This time, the call for collaboration are muted as most of the oil minister look for a second half of the year that is more balanced.