Opec members lock horns over who should cut down production

The members of Organization of Petroleum Exporting Countries (OPEC) couldn't zero in on slashing production levels. The members were disagreeing on who should cut down production first.

The ongoing meeting of Opec at Vienna couldn't reach any positive conclusion. OPEC members are also concerned about increased supplies from the US and Russia, which hammered down oil price over 60 percent from the peak in 2014.

Saudi Arabia is believed to be open for production cuts if non-Opec nations join the drive.

The Ministers from OPEC nations continued their discussions on exploring possible ways to bring back normalcy into the global oil prices. Though the meeting continued for an hour, no agreement was finalized.

There's undercurrent concern that if OPEC takes a decision to cut down production then it'll majorly benefit its competitors.

According to a report by The Wall street Journal, oil and energy sector analysts opine that any production cut from the one-third controlling power group would propel oil price upwards.

Iran's Oil Minister Bijan Zanganeh, after the OPEC meeting, said, "there remained lots of disagreements among ministers and the cartel was not at all close to a deal on its output strategy."

Saudi Arabia proposed an ideal to lift prices to balance global oil markets. Oil prices are hovering at a six-year low. However, Iran, Iraq and Russia rejected this proposal from Saudi Arabia.

As per Reuters, Saudi Arabia asked fellow Opec members to slash production level by one million barrels per day in 2016 if non-Opec nations join them. However, Saudi representatives commented that it was baseless, according to sources.

OPEC a year ago decided to increase production level to keep up its market share and also defend competition from countries like the US and Russia. The North America is increasing shale oil production to put more pressure on Opec, which has been firm on the high production level.

The Guardian reported that the Brent and West Texas Intermediate (WTI) prices for December slid about half of the high level in 2014. The oil prices kept falling throughout 2016. Brent oil price is at $44 a barrel and WTI at $41, just close to 2009 lows.

Iran rejected a Saudi call to join an Opec production cut as it's firm on producing one million barrels a day. Western countries imposed sanctions on Iran over its nuclear program. These sanctions will be lifted in 2016.

"We don't accept any discussion about increasing production after sanctions are lifted. It's our right and we'll not accept anything in this regard," said Zanganeh.

Saudi wants non-Opec members Russia, Mexico, Oman and Kazakhstan join them in production cuts. If the proposal is confirmed, then Saudi Arabia will get into action to fine-tune the strategy to boost the oil prices.