Could China turn to Iran oil? Former Exxon president weighs in

Could China turn to Iran oil? Former Exxon president weighs in

OPEC, he said, "is not an organization to receive the instruction from President Trump and follow it".

Ahead of Friday's meeting, OPEC's largest producer, Saudi Arabia, was seen to be open to higher production but Iran had been hesitant.

As the Organisation of Petroleum-Exporting Countries (OPEC) faces a rift within, ministers of its member countries have gathered in Vienna, the group's headquarters, to discuss the issue of global oil output.

Two OPEC sources told Reuters the group agreed that OPEC and its allies led by Russian Federation should increase production by about 1 million barrels per day (bpd), or 1 percent of global supply.

The price of oil jumped after the announcement, with the global benchmark, Brent, gaining 2.5 percent to $74.84 a barrel in London, and US crude climbing 4.9 percent to $68.72 a barrel in afternoon trading in NY - on track for its biggest one-day rise since OPEC agreed in November 2016 to cut production.

"Of course we will have an agreement" at the meeting on Friday, Saudi Energy Minister Khalid Al-Falih tells reporters in his first comments since arriving in Vienna.

Zanganeh said it was Trump who had created difficulty for the oil market by imposing sanctions against Iran and Venezuela yet he now expects OPEC to deal with the consequences by pumping more.

Kolarov's stunner hands Serbia victory over Costa Rica
The 34-year-old Ivanovic had matched Stankovic's record last Saturday in a 5-1 friendly win over Bolivia. FIFA World Cup 2018 Costa Rica vs Serbia match will take place on Sunday, April 17, 2018.

A production increase on Friday would undo a cut agreed on in late 2016 that has since then helped push up the price of oil by nearly 50 percent.

Saudi Arabia has also proposed relaxing production cuts gradually, while OPEC members Iran, Iraq, Venezuela and Algeria have opposed such a move. However, analysts note members' main reasons for cutting output is to increase short-term revenues and satisfy domestic concerns.

That would effectively mean a boost from producers such as Saudi Arabia that have voluntarily cut more deeply than planned.

Iran's oil minister walked out of a key meeting with OPEC peers on Thursday, as a rift deepened with regional rival Saudi over its push to ramp up the cartel's oil output.

Global oil supplies were already getting tight before President Donald Trump vowed to exit the Iran nuclear deal and impose "powerful" sanctions on the OPEC nation. The US West Texas Intermediate (WTI) crude priced US$66.49 per barrel, up 1.5 per cent from the last close, said the source. A breakdown in talks would threaten the pact agreed in late 2016 to cut output by 1.8 million barrels per day (Mbd)-a level that has seen over-compliance of 152 percent, according to last night's monitoring committee meeting.

Ecuador said Opec and its allies could agree to a compromise increase in output of around 0.5-0.6 million bpd. She said OPEC ministers had acted as "their own worst enemies" by warning this week of a potential shortage of around 2 million barrels per day in the second half of 2018.

"We were teased with an increase of about 1.8 million barrels (per day) at one point, and we ended up getting about 600,000", Kilduff said.

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