Saudi Arabia’s powerful oil minister Ali al-Naimi will meet his Russian, Qatari and Venezuelan counterparts in Doha today, reports FT.
The FT source did not say what the agenda for the meeting would be, but it follows a diplomatic tour by Venezuela’s oil minister Eulogio del Pino aimed at bringing the largest Opec and non-Opec members together.
It is hard to see though why Saudi Arabia would agree to cut back on production. They want to really squeeze the high cost producers. Cutting back on production would only provide a lifeline to the high cost producers.
Oil prices are up though on the news of the meeting. On the New York Mercantile Exchange, light, sweet crude futures for delivery in March recently traded at $30.82 a barrel, up $1.38 in the Globex electronic session. April Brent crude on London’s ICE Futures exchange rose $1.20 to $34.59 a barrel.