Roundup: Consultations underway in Algiers to rebalance oil market

Major oil producers have been consulting in the Algerian capital of Algiers in a bid to reach an agreement to restore balance to energy market marked by volatile oil prices.

The consultations have been launched at the 15th International Energy Forum being held in Algiers, as members of the Organization of Petroleum Exporting Countries (OPEC) are attending the forum, and an informal meeting of the cartel late is slated for Wednesday to discuss ways to stabilize the market.

OPEC Secretary General Mohammad Sanusi Barkindo on Tuesday told reporters that consultations over a possible agreement to reduce oil offer surplus are on a good track.

Barkindo stated that OPEC members are "working hard to make a success the informal meeting due on Wednesday," adding that consultations are on a good track ahead of a possible consensual agreement to rebalance the market.

He further noted that the consultations are part of a long process launched during OPEC meeting in Doha, Qatar, in February and April.

"The process launched by oil producers is increasingly growing and, after the meeting, the consultations will be extended to non-OPEC producing countries and consuming nations," Barkindo said.

Algeria is working to make the informal meeting of OPEC an introduction to a formal one, in a bid to take concrete decisions that would boost oil prices.

Therefore, the country held several talks with both OPEC and non-OPEC members to approach views and persuade them to either reduce or freeze outputs.

Algerian Prime Minister Abdelmalek Sellal said in his opening remarks at the forum that "the current situation of the oil market does not serve any country, and Algeria is working to stabilize the market, and urges for the need to reach a comprehensive agreement to protect the interest of all countries."

He on Tuesday met with a number of global energy players as oil market developments was on the agenda.

Algeria's Prime Minister Office said in a statement that on the sidelines of the International Energy Forum being held in Algiers, Prime Minister Sellal Abdelmalek exchanged views with Saudi Deputy Oil Minister Prince Salman bin Abdul Aziz bin Salman Al-Saud.

The Algerian official also met with Iranian Oil Minister Bijan Namdar Zanganeh, who told reporters "the Algerian prime minister considers it necessary to take actions to restore market balance, and we have agreed to pursue talks, in a hope to reach an agreement that would re-balance the market."

Observers said Algeria aims through such talks to approach divergent views between Iran and Saudi to facilitate the process of the informal OPEC meeting due on Wednesday in Algiers, which is seen as an opportunity to reach an agreement between OPEC members to either freeze or reduce output and ultimately boost oil prices.

Earlier on Tuesday, Russian Energy Minister Alexander Novak told reporters that Russia is conducting talks with other OPEC and non-OPEC members to redress crude oil market.

Russia is a major non-OPEC oil producer, and its participation in the forum is seen as a positive sign ahead of reaching a consensual agreement between global oil producers in a bid to restore balance to the volatile market. Endit