OPEC Aims for Modest Output Hike to Overcome Iran's Dissent

Oil pumps are seen in Lake Maracaibo in Lagunillas Ciudad Ojeda in the state of Zulia Venezuela

Thus, although Saudi Arabia and Russian Federation might decide increase the output, the higher production might not offset the disruptions. "OPEC is not part of the Department of Energy of the United States", Iran's oil minister Bijan Zanganeh told reporters after arriving in Vienna, where OPEC is headquartered.

U.S. shale producers can step up to meet any supply deficit, but Roberts and Phil Flynn, senior energy analyst at the Price Futures Group, said it takes time for them to increase output because of the nature of shale mining.

On the other side, there are OPEC members who would like the price to stay just where it is because they have no spare production capacity and would gain no benefit from any increase in output. The amount of increased oil output that is being discussed in the framework of the OPEC + agreement is fully correlated with the decline made by Venezuela in the last 1.5 years. The U.S. president repeatedly voiced his dissatisfaction with OPEC through social media accusing the cartel of driving up the oil prices, this consequently caused some turbulence in the market and resulted in Saudi Arabia's reaction.

Greg McKenna, chief market strategist at futures brokerage AxiTrader said there would likely be oil price volatility in the week ahead of the meeting.

"Looking ahead, I remain optimistic that we will fulfil our goal of delivering sustainable oil market stability, which is meant to serve the long term interests of producers, consumers and the global economy", Al Mazrouei said in a statement issued by the ministry ahead of 174th Meeting of the OPEC Conference next week in Vienna, Austria. But oil price should not be out of reach. These numbers suggest that U.S. and handful of other non-OPEC countries will more than meet global demand.

Saudi Arabia Denies Punishing Players for Losing 2018 FIFA World Cup Opener
In a video he posted on his Twitter page, he said, " These players have made my face go black with embarrassment and fury ". Russia's 5-0 win against Saudi Arabia was the biggest win for a host nation in a World Cup opener since 1934.

On Tuesday, the head of Russia's second-largest oil firm Lukoil, Vagit Alekperov, said global production cuts should be halved and that Lukoil could restore its oil output levels within two to three months.

The British Chamber of Commerce (BCC) added to the uncertatinty as it cut its growth forecasts for the United Kingdom economy from 1.4% to 1.3% this year and to 1.4% from 1.5% for 2019.

In the run-up to meetings of Opec and its allies in Vienna this week, several nations have floated plans for production increases, but no consensus has emerged for what is likely to be a fractious meeting. Output in Saudi Arabia jumped by 85,500 barrels a day, but was partly offset by production outages in Nigeria, Venezuela and Libya.

Venezuela's state oil company Petroleos de Venezuela has seen its operations mired by problems ranging from fast-declining crude production and poor refining due to a lack of equipment, to obstacles for exporting oil amid port congestion and financial sanctions. OPEC output was last lower in April 2017 at 31.85 million b/d, the last month before West African producer Equatorial Guinea became its newest member.

The Saudis are under pressure, notably from Donald Trump, to raise output and bring to a halt steadily rising crude prices.

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