Saudi Arabia has pulled out of talks with non-OPEC producers including Russia planned for Monday because the exporters’ group still has no internal agreement on how to implement supply cuts, according to two delegates.
OPEC officials were scheduled to meet with non-members including Russia on Monday ahead of a ministerial meeting in Vienna two days later. Instead, the group called another internal meeting to try to resolve its own differences, particularly the question of whether Iran and Iraq are willing to cut production, the delegates said, asking not to be identified because the deliberations are sensitive.
The setback suggests that Saudi Arabia remains split from its two biggest Gulf rivals at the Organization of Petroleum Exporting Countries. With less than a week until the crucial ministerial meeting, the refusal of just one major producer to participate could scuttle the whole deal, which is intended to curb supply and boost prices.
Iran, the group’s third-largest producer, has been insisting it should be allowed to keep increasing output to pre-sanctions levels of about 4 million barrels a day. Iraq’s prime minister appeared earlier this week to accept joining the cuts, but it was unclear whether Baghdad is still disputing the OPEC supply estimates that would provide the basis for any cuts.
Brent crude fell 1.5 percent to $48.24 a barrel amid speculation that OPEC may fail to reach a deal next week.