Members of the  Organization of the Petroleum Exporting Countries (OPEC) will convene on Friday to set output policy, in a regular meeting that has been taking place since last year, to control the oil market post the 2014’s sharp drop of oil prices.

The price of the key commodity has been gradually recovering over the past year, but the market could now get disturbed, as several of the main oil producing nations have different opinions on what should be done.

Saudi Arabia, the world’s biggest exporter of oil and non-OPEC member Russia have suggested a gradual relaxation of production cuts, while OPEC members Iran, Iraq, Venezuela and Algeria have opposed such a move, according to Reuters.

Iran said on Tuesday that reaching a deal on oil output is unlikely.

"I don’t believe at this meeting we can reach agreement. OPEC is not the organisation to receive instruction from President Trump ... OPEC is not part of the Department of Energy of the United States," Reuters quoted Iran's oil minister Bijan Zanganeh telling reporters after arriving in Vienna, where OPEC is headquartered.

The United States President Donald Trump and China have suggested to cool down oil prices and support the global economy by producing more crude, according to Reuters.

On Monday, the United Arab Emirates' Energy Minister Suhail Al- Mazrouei said that the oil market is moving closer to rebalancing.

Oil prices dropped on Tuesday due to the trade dispute between the U.S. and China and amid expectations that OPEC members and Russia will gradually increase output in order to make up for the drops in Venezuela and expected shortfalls from Iran, which is facing U.S. sanctions.

“Commodities are in focus as the Chinese tariffs will not only cover most agricultural products such as soybeans, corn or wheat starting early July, but also crude oil and gasoline among other goods at a so far unknown later stage.” according to a statement from the United Kingdom-based consultancy firm Julius Baer that was sent to media on Tuesday.

“However, there is more policy uncertainty in the cards for the oil market. The much-awaited meeting of (OPEC) will kick-off on Friday, or at least the part where the respective oil ministers meet. Oil prices have softened over the past weeks in expectation of the petronations easing their production restrictions,” the statement added.

For Zawya’s special coverage on the upcoming OPEC meeting:

(Writing by Yasmine Saleh and Shane McGinley; Editing by Nada Al Rifai)
(yasmine.saleh@thomsonreuters.com)

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