OPEC rejects production ceiling

OPEC will stick to its policy of unfettered production after members rejected a proposal to adopt a new output ceiling, but ministers were united in their optimism that global oil markets are improving. While crude prices dipped briefly after Thursday’s meeting, there was little of the rancor that punctuated last December’s gathering. The more harmonious atmosphere meant the group was able to appoint a new secretary-general — Nigeria’s Mohammed Barkindo — something it hadn’t been able to agree on since 2012.  “The atmosphere in today’s meeting was calm without any tensions,” Iranian Oil Minister Bijan Zanganeh, whose disagreements with his Saudi counterpart had unsettled previous meetings. There is “very good unity” among members, he said. The change of mood reflects two developments: a Saudi Arabian oil minister determined to make his first meeting a success and, more importantly, the 80 percent rally in oil prices since January that’s made ministers confident OPEC’s two-year old strategy of trying to win market share from higher-cost producers is working”.

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