IEA: OPEC-Russia Oil Production Deal May Be Meaningless

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The OPEC-Russia deal may not have much impact, at all, on oil production and zinc treatment charges are lower this year.

Only Saudi Arabia Could Increase Production

A deal among some Organization of Petroleum Exporting Countries producers and Russia to freeze production is perhaps “meaningless” as Saudi Arabia is the only country with the ability to increase oil output, a senior executive from the International Energy Agency (IEA) said on Wednesday.

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Brent crude futures are up more than 50% from a 12-year low near $27 a barrel hit early this year, bouncing back after Russia and OPEC’s Saudi Arabia, Venezuela and Qatar struck an agreement last month to keep output at January levels.

Qatar has invited all 13 members of the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers to Doha on April 17 for another round of talks to widen the production freeze deal.

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“Amongst the group of countries (participating in the meeting) that we’re aware of, only Saudi Arabia has any ability to increase its production,” said Neil Atkinson, head of the IEA’s oil industry and markets division, at an industry event.

Zinc Treatment Charges Fall

Benchmark zinc treatment charges for 2016 settled 23% lower for 2016 at $188 a metric ton between Canada’s Teck Resources and commodities group Glencore, as mine supply shrinks.

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