TheCable

The Organisation of the Petroleum Exporting Countries (OPEC) failed to reach a consensus on oil output strategy leaving oil prices at about $50.19  per barrel on Friday.

Oil prices dropped to $49 a barrel just before the OPEC meeting on Thursday, but rose on Friday because the organisation did not agree on oil output targets after Iran insisted on increasing production to regain share of the market it lost during sanction. Saudi Arabia, however, pledged not to increase output.

As at May 26, prices stood at $50.26 per barrel making it the highest in 7 months after a sharp decline in oil prices.

According to REUTERS, “analysts still took away positives from the meeting in Vienna, as Saudi Arabia showed restraint”.

“We will be very gentle in our approach and make sure we don’t shock the market in any way,” said Saudi Energy Minister Khalid al-Falih.

Because Iran’s facilities cannot increase exports by a lot and since oil supplies have been disrupted in many member states, including Nigeria, the OPEC meeting was supportive of oil prices.

“Both sides have achieved their underlying aims; Iran’s production remains unconstrained and Saudis policy of allowing the market to rebalance through price is still in place. Non-OPEC supply has fallen and OPEC has gained market share,” BNP Paribas told REUTERS.

Meanwhile Ibe Kachikwu, Nigeria’s minister of petroleum, says oil outputs in the country rose to 1.6 million barrels a day after it fell to about 1.4 million, following militants attack.

Although, the militants have not slowed down on their attacks, Kachikwu attributed the rise to some repairs on oil and gas installations on facilities damaged by militants.