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Markets

No OPEC deal but Saudis pledge no shocks

Opening sequence

Opening sequence

Markets

No OPEC deal but Saudis pledge no shocks

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COMING UP:No OPEC deal but Saudis pledge no shocks

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Transcript

00:00:00
>> Agreeing to disagree, the OPEC oil cartel failing to set output policy. But Saudi Arabia is promising not to flood the market with oil. Saudi Arabia's new energy minister adopting a more conciliatory tone than his predecessor. His comments soothing fears Riyadh might raise production further to punish its rivals and gain additional market share.
00:00:22
Reuters oil correspondent Ron Bousso.>> The new Saudi energy minister's much more than energy, in fact he's a very a powerful figure within Saudi Arabia, Khalid Al-Falih. And he came early to Vienna, in what OPEC watchers viewed as a positive sign for this support and commitment to OPEC.
00:00:43
What Saudi's trying to do is essentially remove all doubts about its commitment to OPEC and its role within OPEC, after some members viewed its policy of fighting for market share being a negative and detrimental to many of them.>> Tensions between Saudi and Iran, which are fighting proxy wars in Syria and Yemen, have dominated recent OPEC meetings.
00:01:07
In December 2015, the group failed to agree on a formal output target for the first time in years. That sent the price of oil crashing to just $27 a barrel in January, its lowest in over a decade. Prices have recovered to around 50 bucks, but Iran is sticking to its guns.
00:01:25
It wants to raise production to the levels that predate Western sanctions, and it's calling for country quotas before considering an output ceiling. Even so, talk of a showdown between the Sunni-led kingdom and the Shiite Islamic Republic failed to materialize. In fact, OPEC decided unanimously to appoint Nigeria's Mohammad Barkindo as the group's new secretary general.