Anadolu Agency quotes Brent Scowcroft Center Resident Senior Fellow Robert Manning on the upcoming meeting of the Organization of Petroleum Exporting Countries:
“The Saudis and other Gulf states are the key actors who will shape the outcome,” said Robert A. Manning, resident senior fellow of the Brent Scowcroft Center on International Security at the U.S.-based Atlantic Council.
“Other OPEC members – Iran, Venezuela and Nigeria – will push hard for reducing production by one million barrels a day to raise the price of oil back to the $100 level, but they lack the leverage to do so,” Manning said.
Manning stated that some OPEC members are slowly becoming aware of the reality that the rapid growth in non-OPEC oil production, like the U.S. shale revolution and advances in deep-sea drilling, means that OPEC’s control over pricing is diminishing.
“With sanctions on Iran and Russia, if oil stays at about $80 or below, it will be devastating for the Iranian and Russian economies,” said Manning, adding that falling prices may improve the prospects for a nuclear deal with Iran, but Russia needs $110 per barrel to avoid a budget deficit.