Spotlight: OPEC seeks global consensus on cutting oil output

The Organization of the Petroleum Exporting Countries (OPEC) is pursuing a global consensus on cutting oil productions, as it is assembling a meeting of energy ministers in Istanbul, the group's chief said Tuesday.

"In order to restore stability at a sustainable level, we need to work with non-OPEC members including Iran and Iraq," OPEC Secretary General Mohammad Barkindo said at a panel under the 23rd World Energy Congress underway in Istanbul, where the Russian and Venezuelan energy ministers were present as well.

Barkindo stressed that the environment has changed positively in a way that a global consensus becomes possible more than ever after OPEC's meeting late last month in Algiers, the Algerian capital.

In Algiers, the OPEC announced its intention to reduce its oil output to 32.5 million bpd from the current level of some 33.24 million bpd, but details are to be worked out when members meet again in November.

"If we work together in a collective way we are sure that we can re-balance the market," said Barkindo.

In his address to the energy congress on Monday, Venezuelan President Nicolas Maduro Moros stressed that the pressure from low oil prices is growing, making the situation no more sustainable for both nations and companies.

Saudi Arabia's Energy Minister Khalid al-Falih voiced optimism about major oil producers' agreement to cut productions by November at the OPEC's next meeting.

Barkindo argued that the primary concern is not about price at the moment, saying "Until we get the market to re-balance, we will not be able to achieve a fair price."

Russian Minister Alexander Novak drew attention to falling investment worldwide due to volatility in the market. "In the face of a lack of investment, the diversity and the quality of energy resources will decrease as well," he said.

The minister said this development prompted Russian President Vladimir Putin to declare on Monday at the energy congress that freezing or cutting oil production is the cleverest way to deal with the crisis at hand.

"We are ready to join in all possible cooperation here as we believe that OPEC is the most distinguished and reputable institution," added Novak.

For his part, Venezuelan Minister of Petroleum Eulogio Del Pino declared that "We are at the right time at the right place having the opportunity to talk with many world ministers like Mr. Novak."

He urged countries to reach a consensus, saying the world economy is waiting for a decision.

Patrick Pouyanne, the CEO of French oil company Total, referred to the sudden increase in gas price as a response to Putin's statement on Monday, in which the Russian leader also voiced his country's readiness to freeze or reduce oil production.

Over Putin's statement, the Brent petrol price grew 3.1 percent to 53.54 U.S. dollars on Monday, the highest for the past year.

In Pouyanne's view, Russia has made a great contribution to the market by means of Putin's statement.

He said his company, among others, has been struggling against high volatility in the market. "In the face of the growing crises, Total has only achieved 400 billion dollars of investment instead of 700 billion dollars," he noted.

OPEC members are set to meet on Wednesday with Russia and other non-OPEC nations on the sidelines of the energy congress, according to the congress press center.

"What we expect here is common understanding between ourselves and non-OPEC countries in the implementation of the Algeria accord," Barkindo said reportedly on Monday. "I think there is a convergence of views, which I see. Istanbul is an opportunity for putting up the building blocks going forward."

Iranian and Iraqi oil ministers had declared their absence from the four-day energy conference that concludes on Thursday. Endit