SAUDI TWIST ARMS
OPEC members failed to agree an oil production ceiling on Friday at a meeting that ended in acrimony, after Iran said it would not consider any production curbs until it restores output scaled back for years under Western sanctions.
A final OPEC statement was issued with no mention of a new production ceiling.
"We have no decision, no number," Iranian Oil Minister Bijan Zangeneh told reporters after the meeting.
OPEC's secretary general Abdullah al-Badri said OPEC could not agree on any figures because it could not predict how much oil Iran would add to the market next year.
Most ministers left the meeting without making comments, according to Reuters.
Badri tried to lessen the embarrassment by saying OPEC was as strong as ever, only to hear an outburst of laughter from reporters and analysts in the conference room.
The last time OPEC failed to reach a deal was in 2011 when Saudi Arabia was pushing the group to increase output to avoid a price spike amid the Libyan crisis.
Friday's developments set up the fractious cartel for more price wars in an already heavily oversupplied market, with brent crude presently trading at around $43 a barrel.
A year ago, Saudi Arabia pushed though an OPEC decision to defend market share instead of cutting output, ultimately hoping to drive high-cost producers such as U.S. shale firms out of the market.
Many poorer OPEC members have said the group's largest producer was effectively twisting their arms, prompting the Saudi oil minister, Ali al Naimi, to say he would listen to everyone this time.
Iran had made its position clear ahead of the meeting with Zangeneh saying Tehran would raise supply by at least 1mn barrels per day (bpd) - or 1% of global supply - after sanctions are lifted. The world is already producing up to 2mn bpd more than it consumes.
Naimi earlier had said he hoped growing global demand could absorb an expected jump in Iranian production next year: "Everyone is welcome to go into the market".
He made no comment after the meeting, Reuters reports.
Also during the meeting, OPEC welcomed back returning member Indonesia, its 13th member.
Initially on Friday there was no indication of a repeat of the 2011 meeting, which Naimi had called the 'worst ever'.
OPEC sources told Reuters the ministers had agreed to roll over existing policies during the first couple of hours of deliberations. That involved raising the collective ceiling, excluding new member Indonesia, to 31.5mn bpd from the previous 30mn - effectively bringing it in line with real production numbers.
But later, all decisions appeared to have been overturned, leaving the group with no official policy. It was not immediately clear what happened behind closed doors.
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IEA - For the third consecutive year, global energy investment declined, to USD 1.8 trillion (United States dollars) in 2017 – a fall of 2% in real terms. The power generation sector accounted for most of this decline, due to fewer additions of coal, hydro and nuclear power capacity, which more than offset increased investment in solar photovoltaics.
EIA - Crude oil production from the major US onshore regions is forecast to increase 143,000 b/d month-over-month in July from 7,327 to 7,470 thousand barrels/day , gas production to increase 1,066 million cubic feet/day from 69,466 to 70,532 million cubic feet/day .
U.S. FRB - Industrial production rose 0.6 percent in June after declining 0.5 percent in May. For the second quarter as a whole, industrial production advanced at an annual rate of 6.0 percent, its third consecutive quarterly increase. Manufacturing output moved up 0.8 percent in June.
U.S. DT - The sum total in May of all net foreign acquisitions of long-term securities, short-term U.S. securities, and banking flows was a net TIC inflow of $69.9 billion. Of this, net foreign private inflows were $58.8 billion, and net foreign official inflows were $11.1 billion.