Brent crudeoil prices steadied near $80 a barrel on November 25 ahead of a key meeting of the Organization of the Petroleum Exporting Countries (OPEC) oil producers to decide on oil production levels for 2015.
Ministers from the oil cartel were gathering in Vienna for a meeting on November 27 to agree how to respond to a collapse in oil prices, which have fallen by almost a third since June. The OPEC meeting falls on US Thanksgiving.
Sanctions-hit Russia, which needs higher oil prices to support its economy, tried on November 24 to convince OPEC to slash production, suggesting Moscow could cut its own crude output by about 300,000 barrels per day. Russian Energy Minister Alexander Novak said on November 24 there was a possibility of an OPEC output cut but “it is not high”.
Libya, Venezuela, Iran and Ecuador have all called for OPEC to cut production, while Kuwait has said an output reduction is unlikely.
All eyes are on OPEC kingpin Saudi Arabia, with some analysts expecting no price supporting action Riyadh.
Brent was trading at $80.14 a barrel shortly after 8 a.m. EDT, up 46 cents, whileUS crudewas 40 cents higher at $76.18.
A cut in Chinese interest rates on November 21 helped bolster oil prices, raising expectations that demand could be stimulated in the world's biggest energy market.
On November 24, Iran’s parliament reportedly recommended basing next year’s budget on an oil price of $75-80 a barrel, down from $100 in the 2014 budget plan.
The same day world powers extended talks withIranover its nuclear programme, maintaining sanctions and preventing an immediate increase in Iranian oil supply to world markets. British Foreign Secretary Philip Hammond said the talks betweenIranand six world powers had made clear progress and would resume next month. Negotiators had until June to come up with a comprehensive deal.
Iran has reduced its stockpile of low-enriched uranium gas and taken other actions to comply with the terms of last year's interim nuclear agreement.
http://www.neurope.eu/article/russia-offers-helping-hand-opec-price-slides