Morgan Stanley: OPEC will postpone a decision on the market before the meeting in Vienna RIA Novosti

MOSCOW, Sep 26 — RIA Novosti/Prime. Expected OPEC meeting in Algeria is likely to end without reaching any agreement and will be the basis for further negotiations of the organization’s members at the annual OPEC meeting on November 30 in Vienna, analysts at Morgan Stanley.

“Our base scenario assumes that OPEC meeting in Algeria on 28 September will be the official statement. We expect that OPEC will note that this meeting lays the Foundation for a more constructive formal negotiations at the official November meeting of OPEC”, — stated in the message of Morgan Stanley.

According to experts of Bank, for such skepticism regarding a possible agreement there are many reasons. First and foremost, OPEC recently tried to downplay expectations from the Algiers meeting. The Secretary General of the organization Mohammed Barkindo previously reported that at the meeting the main consultation, not decision making. In addition, preliminary negotiations countries had borne fruit. So, last week, Iran and Saudi Arabia decided to hold talks, however, according to media reports, the parties have not reached any agreements, in particular are unable to agree on the methods of evaluation of the level of oil production for the potential of freezing.

According to analysts Morgan Stanley, another factor not in favor of the agreement in Algeria is the fact that the Russian delegation can leave Algeria before the OPEC meeting, that is, negotiations with non-allies countries are expected only after reaching agreement within OPEC.

fourth, according to experts, many members of OPEC previously announced plans to increase production, which also negatively affects the conclusion of an agreement on freezing. In addition, “members of OPEC are aware that any artificial attempts to prematurely raise the price of oil would be counterproductive in the medium term,” analysts at Morgan Stanley.

Despite the fact that the market is pessimistic on the meeting of the oil producers, according to analysts Morgan Stanley, it does not mean that the market will not respond to any news from Algeria.