OPEC meeting in Vienna promised good news. Saudis have been ready to discuss a new limit for daily oil output, ready to calm down the market before the Friday December 4. Ali Al-Naimi, the Saudi Arabian Minister of Petroleum and Mineral Resources, demonstrated the good will of his country, when has offered in advance to discuss terms and conditions of decreasing production. But was not it weird that Machiavellian Saudis decided to offer the discussion while they have not been confident in the intentions of their partners?
Moscow and Tehran hand in hand
In late November after Turkey has shot down a Russian jet, the Kremlin in revenge ruined economic relations with Ankara. The revenge looks like a childish quarrel, but the extremely dangerous one because of the real weapon in boys’ hands. Then Vladimir Putin blamed the president Erdogan for deals with ISIS oil traders. Iran, a new partner of Moscow, promised to present proof of the oil trade between Turkey and Islamic State. Thus Russia and Iran showed the world mutual interests and principle agreement.
Baghdad follows Tehran
The offer of Ali Al-Naimi concerned cutting oil production per day by up to 1 million barrels. Saudis were preparing to stop several rigs, as Americans did, if Russian would join the process and cease torturing the Earth. At the same time Riyadh is aware of Iranian aggressive plans to conquer the market by pumping oil non-stop. How come that petroleum Kingdom overestimated persuasive speech in front of the OPEC members? Tehran refused to limit oil output before it will reach 3,8 million barrels a day. Baghdad agreed with Iran and insisted on non-stop pumping. Russia as non-OPEC country did not bother to join the club and decrease a stream of petrodollars. Therefore the attempt to spot the ceiling failed.
It is Tehran to blame!
In the meeting conclusion is pointed out the global economic growth in 2015 – 2016 at 3.1% – 3.4% respectively. On the forecast for 2016 OPEC sets up its anticipation of global demand to expand by 1.3 mb/d. Not a big deal. At the moment oil and stock levels continue to rise, so where to store the treasure and how to deliver it will become a problem next year. Iran already started to solve the problem by attracting foreign companies. They will take care of storage and delivery. The meeting produces an impression of slowly ticking old clock surrounded by new gadgets. Probably, the impression is totally wrong. Probably, Saudis were acting as a goodwill big brother in front of the OPEC members in order to provoke them to blame Tehran?
Wisdom of Riyadh?
Riyadh feels the pressure of lack of cash for military campaigns in Yemen and Syria, that’s correct. However they will manage to keep the share of the market with $30 a barrel.  At the moment prices are near $39 per barrel WTI and $42 per barrel Brent. The Kingdom of oil and desert is ready to fight using its favorite weapon, a rig. Oil need to be sold cheap to prevent human beings from searching other resources of energy. 


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