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Business

Devil is in the detail in OPEC deal

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Opening sequence

Business

Devil is in the detail in OPEC deal

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COMING UP:Devil is in the detail in OPEC deal

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00:00:01
>> It's a case of the morning after the night before. Despite an initial rally oil prices slipping on Thursday, as question marks emerge over the details of the OPEC deal. It's the first time in eight years the oil producers have agreed to cut output. And many triumph given past attempts have been complicated by political rivalry between Iran and the group's leader, Saudi Arabia.
00:00:27
Investors though, questioning whether the agreement is enough to rebalance a heavily oversupplied world market. And oil producers like Iraq signal the deal might not work for them even before the meeting was over. Reuters oil editor Dmitry Zhdannikov says it's good news that Saudi and Iran have managed to agree, but there's still a lot of skepticism.
00:00:49
>> A lot of analysts are of course questioning the deal and saying the devil will be in the detail because so far we know very little about what the OPEC has agreed on. They've re-established a production ceiling. But then of course they will need to be talking about individually what each country can be producing.
00:01:09
>> Just how much each country will produce will be decided at the next formal meeting in November, divvying it up won't be easy.>> Iran for instance is insisting that its production should be, should rise deeply in the months ahead because it's just coming out of the international sanctions.
00:01:28
And the Saudis are arguing that what Iran wants to produce they have never even produced before the sanctions.>> An invitation to joint cuts could be extended to non OPEC countries such as Russia. But some analysts say OPEC production might do little to reduce over supply given uncertainty about output from Iran, Libya and Nigeria.