Ecuadoran President Rafael Correa on Saturday said that he hopes OPEC countries will reach an agreement to stabilize the oil market at the upcoming meeting in Algeria, warning of “serious risks” for the group if they do reach a deal.
OPEC members are to hold an informal meeting in Algeria from today to Wednesday.
“It is a meeting being held for other reasons, but all the OPEC members will be there, so we hope to have other informal meetings and reach agreements to stabilize the oil market,” Correa said in his weekly televised broadcast.
“Otherwise the consequences could be very serious, it could lead to a disintegration of OPEC itself... There is even a risk that internal disputes within OPEC could lead prices to plummet again,” he said.
Ecuador supports the position of ideological ally Venezuela that major oil producers should freeze production levels to limit excess supply and support prices.
The idea has received some support among oil producers, but oil prices slumped on Friday on signs that OPEC members Saudi Arabia and Iran were struggling to reach a preliminary consensus in the run-up to the Algeria talks.
A previous bid to freeze output, led by Saudi Arabia, fell apart in Doha in April when Iran refused to play ball, arguing it needed to bring its production back up to pre-Western sanctions levels.
“An agreement on a production freeze accepted by everyone would be a surprise,” said Didier Houssin, head of research group IFPEN.
“Analysts expect more a comment that’s a bit calming on the need to continue to follow the market ... and to stabilize production. Without binding measures, without specific quotas,” Houssin said.
The OPEC talks are to take place on the sidelines of a three-day International Energy Forum gathering — in which Russia will participate — from today.
So far the two major producers have not taken any action to reduce the oversupply, which has resulted from a boom in US fracking and from OPEC’s nearly two-year-old strategy to throw open the spigots to defend market share.
OPEC secretary-general Mohammed Barkindo of Nigeria, has himself dampened expectations, describing the meeting as consultative, while Algerian Minister of Energy Noureddine Boutarfa has notably said OPEC could call a special decisionmaking meeting in Algiers.
Oil prices have plunged from peaks of more than US$100 a barrel in the middle of 2014 to near 13-year lows below US$30 in January. Prices have strengthened since lows at the start of the year and currently stand at about US$45 a barrel, within striking distance of the US$50 to US$60 range desired by some OPEC members.
Additional reporting by AFP
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily