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 an accord, while Libya and Nigeria -- both exempt from any cuts -- are boosting output, increasing the burden on other members. Russia, the biggest non-OPEC supplier, doesn’t plan to attend the Vienna talks even though several members have insisted it contribute to cuts.
OPEC’s output swelled to a record 33.6 million barrels a day last month. The group’s own estimates show that the September agreement would barely drain a record global oil surplus next year without the cooperation of producers outside the organization. "

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