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00:00:00
>> Oil prices falling again Friday because of what's happening, or not happening here, the OPEC Club of Oil-Producing Nations meeting in Vienna. They had been expected to agree at cutting production of up to 1.5 million barrels per day. But hopes of a deal are fading, it's not clear if non-OPEC member Russia will make matching cuts.
00:00:21
The Saudis won't move without that, then there are OPEC's international divisions. Reuters energy editor Dmitry Zhdannikov is following events in Vienna.>> Before we come to Russia, OPEC needs to agree internally which country should be getting exemptions, and it seems that Iran is becoming the main problem at the moment.
00:00:41
As we all know Iran has been under new fresh U.S sanctions since November, and that has reduced it's oil exports very steeply. So as a result Iran says, I cannot agree to an oil output cut, but Saudi Arabia has so far refused to grant Iran exemptions. And of course all of that comes against the backdrop of pressure from U.S. President Donald Trump on Saudi Arabia.
00:01:10
Pressure not to reduce supplies and help the global economy, but also continue to squeeze Iran, because if OPEC cuts output, effectively that will mean higher prices and that will mean that Iran will get higher revenues and this is not for Trump wants. Further complicating talks is the entire story around the killing of Saudi journalist Jamal Khashoggi, as we know U.S. politicians have been putting a lot of pressure on Trump to put steep sanctions on Saudi Arabia, but Trump has so far resisted doing so.
00:01:40
He gave full support to Saudi Crown Prince, Mohammed bin Salman, and of course that means that he will want some payback for this, and the payback is probably a no deal here at OPEC at all.