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.
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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...