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Business

OPEC eyes deal to boost oil prices

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Business

OPEC eyes deal to boost oil prices

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17:43
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COMING UP:OPEC eyes deal to boost oil prices

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00:00:00
>> Oil prices might be about to get a boost. Ministers from the OPEC cartel have produced a nation's meeting in Algeria next week. Russia will be there, too. And there's growing talk of a deal to cut production to boost prices. Dmitry Zhdannikov is Reuters' chief oil and gas specialist in Europe.
00:00:18
He's been reading the signs.>> The reason why we, and actually sources are telling us believe that chances are increasing. Is simply because most producers including Saudi Arabia, the biggest producer in OPEC, and Iraq and Iran and non-OPEC Russia. They've all pretty much reached the peak production capacity.
00:00:44
So, it's very difficult for them to push output any further. And hence the situation for compromise is slightly better than, let's say, a few months ago.>> But oil market veterans aren't holding their breath. OPEC often discusses production cuts and rarely delivers. Even when it agrees a deal, members have a habit of reneging.
00:01:05
Domestic politics could also get in the way.>> An oil minister cannot travel back to his home country and report to his government that he cut a deal that will be perceived as a weak deal at home. So he needs to present it as some sort of a victory.
00:01:25
>> Iran may hold the key. It's only just returned to international markets after sanctions were lifted. Tehran has been busy ramping up output, not cutting it. Now Reuters sources say Saudi Arabia might cut production if Iran will at least stop increasing. But both sides will need a deal that makes them look like the victor.