- Reuters/Leonhard Foeger
It will still be business as usual at OPEC.
Meeting in Vienna on Thursday, the 13-member cartel of oil-producing nations again failed to agree on a production ceiling.
West Texas Intermediate crude futures in New York extended losses and fell 1% after the news, to $48.59 a barrel. Brent crude, the international benchmark, also slipped.
A production ceiling, or cut, could reduce the oil-supply glut that triggered the largest price crash in decades. Higher oil prices would help the economies of member states that rely on oil exports to generate revenues.
One important thing OPEC agreed on was a new leader.
Bloomberg reported, citing a delegate, that OPEC appointed Nigeria’s Mohammed Barkindo as its next secretary-general. Barkindo is a former head of the Nigerian National Petroleum Commission, and he was an acting secretary-general of OPEC a decade ago.
The oil cartel was meeting for the second time since April. Bloomberg had reported that Saudi Arabia wanted to use the meeting, in part, to mend its relationship with other member states.
Saudi Arabia in April declined to move forward on a production deal without the involvement of Iran, a geopolitical rival. Iran was looking to boost its output and start exporting after the removal of economic sanctions.
Gabon will become OPEC’s newest member.
Here’s a chart of WTI trading after the reports of no deal crossed: