Saudi
Arabia Minister of Petroleum and Mineral Resources Ali Ibrahim Naimi
speaks to journalists before a meeting of the Organization of the
Petroleum Exporting Countries, OPEC, at their headquarters in Vienna,
Austria, Dec. 4, 2015.
OPEC ministers are meeting Friday in Vienna where they will decide
whether to slash production to help raise oil prices that have fallen to
extreme lows.
Most market analysts expect members of the 12-nation global oil cartel to maintain production levels.
Ahead of the semi-annual meeting, OPEC's biggest producer, Saudi Arabia, defied calls to slash output, in hopes of protecting its share of the market.
OPEC nations are faced with a massive surplus of oil, sending prices plunging more than 60 percent in the last 1½ years.
The surplus could soon become more severe.
Iran output
Western sanctions against Iran's oil industry are set to be lifted next year, and Tehran has vowed to reach presanction production levels. Before the sanctions, Iran was OPEC's second-largest oil producer.
Iraq has also vowed to boost supply in the coming year.
A recent surge in U.S. production of shale oil has provided more competition for OPEC producers.
Led by Saudi Arabia and the Gulf states of Qatar, the United Arab Emirates and Kuwait, OPEC pumps about one-third of the world's oil, and has faced recent pressure from its poorer members to cut output.
However, wealthier producers argue that cutting production at this time would result in further loss of market shares in North America, where demand for OPEC oil has been sharply reduced.
Most market analysts expect members of the 12-nation global oil cartel to maintain production levels.
Ahead of the semi-annual meeting, OPEC's biggest producer, Saudi Arabia, defied calls to slash output, in hopes of protecting its share of the market.
OPEC nations are faced with a massive surplus of oil, sending prices plunging more than 60 percent in the last 1½ years.
The surplus could soon become more severe.
Iran output
Western sanctions against Iran's oil industry are set to be lifted next year, and Tehran has vowed to reach presanction production levels. Before the sanctions, Iran was OPEC's second-largest oil producer.
Iraq has also vowed to boost supply in the coming year.
A recent surge in U.S. production of shale oil has provided more competition for OPEC producers.
Led by Saudi Arabia and the Gulf states of Qatar, the United Arab Emirates and Kuwait, OPEC pumps about one-third of the world's oil, and has faced recent pressure from its poorer members to cut output.
However, wealthier producers argue that cutting production at this time would result in further loss of market shares in North America, where demand for OPEC oil has been sharply reduced.
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