Opec making progress in nailing down accord

Opec officials are working to nail down details of their plan to limit oil supply and gaps over some sticking points are narrowing, sources said, a sign of progress in finalising the exporter group’s first such deal since 2008.

Opec agreed in Algeria on September 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 November 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, which are below $47 (€44) a barrel.

Crude reached a 2016 high near $54 (€50.44) after the September deal.

Two sources said efforts were under way to narrow gaps and a final agreement would be reached.

One issue has been the level of production at which Iran would be expected to freeze its output.

This issue, several Opec sources said, was a source of tension at an October 28 meeting in Vienna of the High-Level Committee, a panel looking at how to divide the Algeria agreement into individual supply limits.

“Whatever it takes to reach a consensus will be taken by the ministers,” said a third Opec source, referring to finding a compromise over Iran.

Reuters