An unscheduled meeting of OPEC countries is called in Algeria next month. Russia which is not a member of OPEC has also shown interest in joining this Informal meeting. The prices are getting low day by day and that is why the meeting is called on September 26 to September 28. Muhammad bin Saleh Al-Sada, the minister energy in Qatar and president at OPEC said that “the oil price slump is “only temporary” and the market remains on track to recover”.
Venezuela that has large amount of oil sources could run out of cash and will face serious crises within a year. Even Saudi Arabia, the economically most powerful country of OPEC has cut down its budget and that have resulted in a wave of job cuts. Russia, the world largest oil producer is also being suffered by these crises and compelled to cut their defense budget. Although Alexander Novak, Energy minister in Russia said that there is no need of production freeze right now however a freeze could be required in case the prices fall further.
Cheap oil prices have killed almost 2 lac jobs in the United States. This thing has created serious panic in the Texas, North Dakota and many other oil producing parts of United States. The percentage profit is getting low day by day. OPEC is holding a meeting doesn’t mean that all the countries will agree on production caps. A recent meeting was held in Doha in April, in which both OPEC and non OPEC countries discussed the matter but failed ultimately. The biggest hurdle in this entire scenario could be Iran. I ran has refused to entertain the production freeze, until their outputs return back to pre-sanction level.