Saudis Temper Call for Cuts and Russia Digs In - Bloomberg

Saudis Temper Call for Cuts and Russia Digs In - Bloomberg:
"OPEC surprised the market in September with a preliminary agreement to reduce supply to 32.5 million to 33 million barrels a day, breaking a two-year policy to pump at full throttle. The news pushed prices above$50 a barrel in New York for the first time since June, but optimism faded as subsequent meetings failed to decide cuts for individual members.

Ministers gather in Vienna Wednesday for final talks to hammer out a deal with several obstacles remaining. There’s still no agreed mechanism for Iran and Iraq to participate in a deal, although Baghdad last week appeared to reverse its opposition to making cuts. Libya and Nigeria, both exempt from any supply reductions, are boosting output, increasing the burden on other members. OPEC supply had already swelled to a record 33.6 million barrels a day last month.
OPEC’s own estimates show that the September agreement would barely drain a record oil surplus next year without the cooperation of producers outside the group. Several members are said to be adamant that Russia, the biggest non-OPEC supplier, should shoulder some of the cuts. So far Russia has offered no more than to freeze at current record levels.
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