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Published: Mon, October 24, 2016
Economy | By Melissa Porter

OPEC Invites Russia For Meeting To Boost World Oil Prices

OPEC Invites Russia For Meeting To Boost World Oil Prices

The price of crude has gained about 15 percent since that proclamation.

"Now the real work starts", the IEA said. They aim to draw up a plan before a meeting November 30 in Vienna.

The agency also noted that OPEC supply reached an all-time high of 33.64 million barrels a day in September.

Further boosting global supply levels is the fact that production in non-OPEC member Russian Federation hit a post-Soviet record.

The global crude glut is estimated at 1.0 million to 1.5 million barrels per day (bpd).

He said that if the trends persisted, they would give way to oil shortages and "new, unpredictable price hikes".

"OPEC has abandoned its free-market policy set in train almost two years ago".

Why are crude oil prices down today?

Four member states - Gabon, Indonesia, Iran and Libya - did not report production levels directly to OPEC in September.

"Why should we do it?", Sechin said to Reuters when questioned about his position on production cuts in Istanbul.

The energy ministers of most OPEC members attended the talks at an Istanbul hotel.

The announcement came after a meeting in Istanbul between top OPEC energy ministers with their Russian counterpart, Aleksandr Novak, on October 10.

It will be OPEC's first output reduction in eight years and comes two years after prices crashed from highs above $100 a barrel.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $51.24 a barrel, down 11 cents from their last close, but also near Monday's high of $51.60 a barrel. Brent crude was losing 20 cents, trading at almost $53 per barrel.

Goldman Sachs analysts said oil prices could fall back to $43 if OPEC fails to finalize an output-cutting deal in Vienna.

"Even with tentative signs that bulging inventories are starting to decline, our supply-demand outlook suggests that the market - if left to its own devices - may remain in oversupply through the first half of next year", the IEA said. Oil prices rallied after that announcement then, but later lost steam amid growing skepticism if OPEC would be able to agree to quotas and more importantly, to stick to its decisions.

This post was syndicated from BusinessDay: News you can trust.

An expanded version of this report appears at WSJ.com.

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