Oil Slides After Iran, Iraq, Indonesia Said To Have "Reservations" About Proposed 4.5% Production Cut

Tyler Durden's picture

Update: oil has slid to LOD following headlines that just one week before the Vienna deal, one which according to the Nigerian oil minister was supposed to be finalized today, more discord has emerged, as a result of Iran, Iraq and Indonesia expressing "reservations" about the proposed 4.5% output cut which exempts only LIbya and Nigeria.

  • OPEC EXPERTS RECOMMEND MINISTERS DEBATE NEXT WEEK AN OIL OUTPUT CUT OF 4.0-4.5 PCT FOR EACH MEMBER EXCEPT LIBYA, NIGERIA - RTRS
  • OPEC SOURCES SAY IRAN, IRAQ, INDONESIA HAVE RESERVATIONS REGARDING PROPOSED 4.5 PCT CUT

It also means that contrary to constant media representations, Iran was in fact not to be exempt from a production cut, and suggesting that there was never a real agreement to begin with.

* * *

After the last few days melt-up in WTI because "an OPEC deal is certain," it seems Iraq is ready to spoil the party once again. Sending WTI (Jan17) tumbling from over $49 to a $47 handle, Reuters reports, Iraqi Foreign Minister Ibrahim al-Jafari told reporters, "it would not be fair for us to cut oil output."

OPEC should allow Iraq to continue raising output with no restrictions, Foreign Minister Ibrahim al-Jafari told reporters in Budapest on Tuesday, commenting on a plan by the organization to limit supply in order to support prices.

 

"We think we should increase output. Iraq is in a special situation ...we are at war," he said, referring to the ongoing military campaign to defeat Islamic State.

And the reaction is a pullback in WTI's panic bid...

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bada boom's picture

The world ain't fair!

eforce's picture

Iran might consider stopping the pumps after the Houthi's take Riyadh.

abyssinian's picture

These fucking oil production cut talks are pathetic!  They all need money while there isn't any demand for freaking oil... why do traders even bother trade on this? freaking retarded. 

LawsofPhysics's picture

No demand?

Don't confuse price manipulation with demand.

There are in fact over 7 billion people that are completing for jobs and a higher standard of living!!!!

In order to do work and have a higher standard of living you do in FACT need consumable calories and reduced hydrocarbons!!

Guess what OIL IS fucknut?

Planetary Books's picture
Planetary Books (not verified) Nov 22, 2016 8:54 AM

Making Sense Of Elections, The Future of Gold & US Dollar Through Manipulation Theory

http://bit.ly/2fXY1cG

SallySnyd's picture

Here is an article that looks at the global economies that have been most impacted by low oil prices:

 

http://viableopposition.blogspot.ca/2016/05/over-reliance-on-oil-economi...

south40_dreams's picture

Oil traders are rioting and burning quickie marts

NDXTrader's picture

Don't worry, they've almost got WTI back green again. Look, nothing they agree to here will ever be implemented. They could pull any number out of the sky and it would be equally worthless. They all cheat, and will do so from Day 1