Oil prices fell sharply Friday after Saudi Arabia pulled out of a scheduled meeting with Russia and other oil producers outside the Organization of Petroleum Exporting Countries. OPEC and non-OPEC members were scheduled to meet Monday to discuss production cuts ahead of the 14-nation oil cartel’s Nov. 30 meeting.

At 2:55 a.m. EST Saturday, Brent crude oil, the global benchmark, was trading at $47.12 a barrel, lower by almost 4 percent, but dipped below the $47 mark several times in the preceding hour. WTI Crude, the U.S. benchmark, was trading at a loss of over 4 percent at $45.96 a barrel.

In the meeting between OPEC and non-OPEC producers, Russia, which along with Saudi Arabia is one of the world’s two largest producers, was expected to offer to freeze production at current levels instead of reducing it. Saudi Arabia pulled out of the talks due to disagreements over sharing supply cuts, and the Monday talks collapsed before they even started.

An OPEC official said Friday that Saudi Arabia wanted the cartel members to clear up their own differences before they sat down at the table with non-OPEC members, the Wall Street Journal reported.

Crude oil prices had recovered during the past week after Iran, an OPEC member reluctant to agree to production cuts, signaled its willingness to fall in line with the cartel’s plans.

“It is highly probable that oil and energy ministers of the member countries of Organization of Petroleum Exporting Countries will reach an agreement in the Nov. 30 meeting,” Iranian Oil Minister Bijan Zangeneh said Nov. 19 after meeting with OPEC’s secretary general in Tehran.

Iran and Iraq had disagreed with production cuts at OPEC’s previous meeting in Vienna a month ago, sending crude prices tumbling. The change of stance by Iran, which has been ramping up its production since the lifting of international sanctions earlier this year, was expected to boost the chances of a production cut being agreed to during the upcoming meeting Wednesday.

“The charade is coming to an end. They had to cancel the Monday meeting to avoid the embarrassment of it ending in failure. The market richly rewarded OPEC for rhetoric and now is poised to punish it harshly if they fail to come to an agreement,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, told Bloomberg.
• Oil Prices Fall Again As OPEC Can’t Agree On Production Cuts </s> The meeting was planned to discuss the contribution that producers outside OPEC will make to a proposed supply-limiting agreement. OPEC oil ministers meet on Wednesday in an effort to finalize their deal.

"There is an official letter from (Saudi Arabia) saying (it is) not attending the meeting because the ministers should agree to the cut and then present the agreement to non-OPEC countries," an OPEC source said. "This will be more effective‎."

The Organization of the Petroleum Exporting Countries is trying to cement a preliminary September agreement in Algeria that would reduce its production to between 32.5 million and 33 million barrels per day, its first supply curb since 2008.

OPEC aims to remove a supply glut and prop up oil prices, which at below $48 a barrel are less than half their level of mid-2014. Oil prices extended an earlier decline on Friday after news of the Saudi no-show.

The organization also wants non-OPEC producers such as Russia to curb output. Russian Energy Minister Alexander Novak on Thursday said OPEC had proposed that non-OPEC cut oil production by 500,000 bpd.

The Monday talks were still scheduled to go ahead and a Russian source familiar with the matter said Russia planned to attend.

A similar OPEC and non-OPEC meeting in October resulted in no specific pledges from outside producers to cut output, with attendees citing the lack of an internal OPEC agreement.

Saudi Arabia had asked that this earlier meeting be called off, but was convinced by other members to attend in order not to embarrass the group, a source said.

Despite extensive diplomacy, the OPEC side of the deal still faces setbacks from Iraq's call for it to be exempt and from Iran, which wants to increase supply because its output has been hit by sanctions.

A meeting of OPEC experts this week made some progress in how to implement the cut, but Iran and Iraq raised conditions for participating, according to sources.

"We have to solve our problems as OPEC first. We have not achieved an agreement within OPEC," a Gulf source familiar with Saudi oil thinking said on Friday.

"Before we meet with non-OPEC and ask them to participate in any action, we have to have an‎ agreement that is credible with clear numbers and a system that the market believes."

OPEC last persuaded non-OPEC nations to make joint cuts at the start of the millennium. Nonetheless, OPEC believes rival producers need to help in the current effort.

Its Economic Commission Board, comprised of the national representatives of the 14 member countries who report to their respective oil ministers, concluded a two-day meeting at the group's Vienna headquarters on Thursday.

"We concluded that non-OPEC should participate in the cut as OPEC alone can't get balance back to the market," said a source familiar with the matter, who declined to be identified as the talks were private.

Ahead of next Wednesday's OPEC meeting, ministers are still trying to find agreement. Algerian Energy Minister Nouredine Bouterfa said he would visit Tehran on Saturday and meet his Iraqi counterpart in Vienna on Monday for more talks.

"We have held lengthy discussions with our counterparts about practical questions and we remain optimistic that the Vienna meeting will consolidate the historic agreement obtained in Algiers," Bouterfa told state news agency APS, referring to the talks in September that yielded a preliminary deal. </s> DUBAI/LONDON (Reuters) - Top OPEC oil exporter Saudi Arabia has told the producer group it will not attend talks on Monday with non-OPEC producers to discuss limiting supply, OPEC sources said, as it wants to focus on having consensus within the organization first.

OPEC logo is pictured ahead of an informal meeting between members of the Organization of the Petroleum Exporting Countries (OPEC) in Algiers, Algeria September 28, 2016. REUTERS/Ramzi Boudina/File Photo

The Nov. 28 meeting in Vienna was planned to discuss the contribution that producers outside OPEC will make to a proposed supply-limiting agreement. OPEC oil ministers meet on Wednesday in an effort to finalize their deal.

“There is an official letter from (Saudi Arabia) saying (it is) not attending the meeting because the ministers should agree to the cut and then present the agreement to non-OPEC countries,” an OPEC source said. “This will be more effective‎.”

The Organization of the Petroleum Exporting Countries is trying to cement a preliminary September agreement in Algeria that would reduce its production to between 32.5 million and 33 million barrels per day, its first supply curb since 2008.

OPEC aims to remove a supply glut and prop up oil prices, which at below $48 a barrel are less than half their level of mid-2014. Oil prices extended an earlier decline on Friday after news of the Saudi no-show.

The organization also wants non-OPEC producers such as Russia to curb output. Russian Energy Minister Alexander Novak on Thursday said OPEC had proposed that non-OPEC cut oil production by 500,000 bpd.

Monday’s talks will be converted into another OPEC-only meeting, OPEC sources said, to try to resolve the group’s internal differences before the ministerial gathering on Wednesday.

A similar OPEC and non-OPEC meeting in October resulted in no specific pledges from outside producers to cut output, with attendees citing the lack of an internal OPEC agreement.

Saudi Arabia had asked that this earlier meeting be called off, but was convinced by other members to attend in order not to embarrass the group, a source said.

NO CONSENSUS YET

Despite extensive diplomacy, the OPEC side of the deal still faces setbacks from Iraq’s call for it to be exempt and from Iran, which wants to increase supply because its output has been hit by sanctions.

A meeting of OPEC experts this week made some progress in how to implement the cut, but Iran and Iraq raised conditions for participating, according to sources.

“We have to solve our problems as OPEC first. We have not achieved an agreement within OPEC,” a Gulf source familiar with Saudi oil thinking said on Friday.

“Before we meet with non-OPEC and ask them to participate in any action, we have to have an‎ agreement that is credible with clear numbers and a system that the market believes.”

OPEC last persuaded non-OPEC nations to make joint cuts at the start of the millennium. Nonetheless, OPEC believes rival producers need to help in the current effort.

Its Economic Commission Board, comprised of the national representatives of the 14 member countries who report to their respective oil ministers, concluded a two-day meeting at the group’s Vienna headquarters on Thursday.

The OPEC flag and the OPEC logo are seen before a news conference in Vienna, Austria, October 24, 2016. REUTERS/Leonhard Foeger/File Photo

“We concluded that non-OPEC should participate in the cut as OPEC alone can’t get balance back to the market,” said a source familiar with the matter, who declined to be identified as the talks were private.

Ahead of next Wednesday’s OPEC meeting, ministers are still trying to find agreement. Algerian Energy Minister Nouredine Bouterfa said he would visit Tehran on Saturday and meet his Iraqi counterpart in Vienna on Monday for more talks.

“We have held lengthy discussions with our counterparts about practical questions and we remain optimistic that the Vienna meeting will consolidate the historic agreement obtained in Algiers,” Bouterfa told state news agency APS, referring to the talks in September that yielded a preliminary deal. </s> Persons stand in front of the headquarters of the Organization of the Petroleum Exporting Countries, OPEC, in Vienna, Austria, Saturday, Dec. 10, 2016. OPEC member states are meeting with Russia and other non-OPEC countries in Vienna for talks about a reduction in oil production. Secretary General Mohammed Barkindo said the discussions began Saturday in a "positive atmosphere" at the headquarters of the oil producers' cartel. (AP Photo/Ronald Zak) </s> FUJAIRAH (United Arab Emirates): Saudi Arabia on Monday said two of its oil tankers were sabotaged off the coast of the United Arab Emirates in attacks that caused "significant damage" to the vessels, one of them as it was en route to pick up Saudi oil to take to the United States.

The announcement by the kingdom's energy minister, Khalid al-Falih, came as the US issued a new warning to sailors and the UAE's regional allies condemned the reported sabotage on Sunday of four ships off the coast of the port city of Fujairah.

The statement came just hours after Iranian and Lebanese media outlets aired false reports of explosions at the city's port. Emirati officials have declined to elaborate on the nature of the sabotage or say who might have been responsible.

The US has warned ships that "Iran or its proxies" could be targeting maritime traffic in the region. America is deploying an aircraft carrier and B-52 bombers to the Persian Gulf to counter alleged threats from Tehran.

Shortly after the Saudi announcement, Iran's Foreign Ministry called for further clarification about what exactly happened with the Saudi tankers. The ministry' spokesman, Abbas Mousavi, was quoted by the official IRNA news agency as saying there should be more information about the incident.

Mousavi also warned against any "conspiracy orchestrated by ill-wishers" and "adventurism by foreigners" to undermine the maritime region's stability and security.

Tensions have risen in the year since President Donald Trump withdrew the United States from the 2015 nuclear deal between Iran and world powers, restoring American sanctions that have pushed Iran's economy into crisis. Last week, Iran warned it would begin enriching uranium at higher levels in 60 days if world powers failed to negotiate new terms for the deal.

In his statement, al-Falih said the attacks on the two tankers happened at 6 a.m. Sunday.

"One of the two vessels was on its way to be loaded with Saudi crude oil from the port of Ras Tanura, to be delivered to Saudi Aramco's customers in the United States," al-Falih said. "Fortunately, the attack didn't lead to any casualties or oil spill; however, it caused significant damage to the structures of the two vessels."

Saudi Arabia did not identify the vessels involved, nor did it say whom it suspected of carrying out the alleged sabotage.

The kingdom's Foreign Ministry condemned the incident in a statement published on the state-run Saudi Press Agency on Monday as a "criminal act" that threatens the "safety of maritime traffic, which reflects negatively on regional and international peace and security."

Al-Falih also said the attack aimed to undermine the "security of oil supplies to consumers all over the world" and emphasized the "joint responsibility of the international community to protect" the safety of maritime navigation and oil tankers.

Underling the regional risk, the general-secretary of the six-nation Gulf Cooperation Council described the incident as a "serious escalation."

"Such irresponsible acts will increase tension and conflicts in the region and expose its peoples to great danger," Abdullatif bin Rashid al-Zayani said. Bahrain, Egypt and Yemen's internationally recognized government similarly condemned the alleged sabotage. </s> Saudi Arabia has called for two urgent meetings of its Arab allies later this month to discuss recent attacks on shipping and oil production sites amid rising tensions with bitter regional rival Iran.

 

 Saudi King Salman on May 18 called for leaders of the Gulf Cooperation Council and the Arab League to meet for the emergency summits in Mecca on May 30.

 

 Saudi and other officials said the discussions would focus on an attack on four commercial vessels off the coast of the United Arab Emirates and a series of armed drone attacks on oil production sites near Riyadh.

 

 Iran has denied it was involved in the attack on the vessels. Yemen-based Huthi rebels, who are supported by Tehran, have claimed responsibility for the drone attacks on Saudi Arabia.

 

 Leaders at the summits will "discuss these aggressions and their repercussions on the region," the official Saudi news agency SPA quoted a Foreign Ministry official as saying.

 

 The U.A.E., a close Saudi ally, welcomed King Salman’s call to convene the Mecca summits and said the “critical circumstances” in the Middle East called for a united stand by Arab nations in the Persian Gulf and elsewhere.

 

 Sunni Muslim Saudi Arabia and the U.A.E. are strong allies of the United States in the geopolitical battle against Shi’ite-led Iran.

 

 Saudi Foreign Minister Adel al-Jubeir on May 19 accused Iran of seeking to destabilize the region and urged the international community to take responsibility to stop Tehran from doing so.

 

 The flurry of activity comes amid increasing tensions between the United States and Iran. Washington has beefed up its military presence in the Middle East after what it said were intelligence reports suggesting Iran was planning an attack.

 

 Despite the moves, U.S. President Donald Trump has said he is not looking to start a war with Tehran and has urged Iranian leaders to sit down for talks.

 

 Iranian leaders have also dismissed the possibility of war.

 

 "There will be no war because neither do we want a war, nor has anyone the idea or illusion it can confront Iran in the region," Foreign Minister Mohammad Javad Zarif said during a visit to Beijing, Iran's IRNA state news agency reported.

 

 Jubeir, the Saudi foreign minister, also said his country "does not want a war in the region nor does it seek that."

 

 "It will do what it can to prevent this war and, at the same time, it reaffirms that in the event the other side chooses war, the kingdom will respond with all force and determination, and it will defend itself and its interests."

 

 Meanwhile, the small Persian Gulf nation of Bahrain said it is ordering all of its citizens to immediately leave Iraq and Iran amid the rising tensions in the region.

 

 Bahrain's Foreign Ministry cited the "unstable situation in the region and the grave developments and threats that threaten security and stability."

 

 Sunni-led Bahrain regularly accuses Iran of stirring dissent among its Shi’ite-majority population.

With reporting by dpa, Reuters, and AFP </s> Saudi Arabia wants to avert war in the region but stands ready to respond with "all strength and determination" after last week's attacks on Saudi oil assets, a senior official said, adding that the ball was now in Iran's court.

Riyadh has accused Tehran of ordering Tuesday's drone strikes on two oil pumping stations in the kingdom, claimed by Yemen's Houthi group.

The attack came two days after four vessels, including two Saudi oil tankers, were sabotaged off the coast of the United Arab Emirates (UAE).

Iran has denied it was behind the attacks which come as Washington and the Islamic Republic spar over sanctions and the US military presence in the region, raising concerns about a potential US-Iran conflict.

"The kingdom of Saudi Arabia does not want a war in the region nor does it seek that," Minister of State for Foreign Affairs Adel al-Jubeir told a news conference on Sunday.

"It will do what it can to prevent this war and at the same time it reaffirms that in the event the other side chooses war, the kingdom will respond with all force and determination, and it will defend itself and its interests."

Saudi Arabia's King Salman on Sunday invited Gulf and Arab leaders to convene emergency summits in Mecca on May 30 to discuss implications of the attacks.

"The current critical circumstances entail a unified Arab and Gulf stance toward the besetting challenges and risks," the UAE foreign ministry said in a statement.

Saudi Arabia's Sunni Muslim ally the UAE has not blamed anyone for the tanker operation, pending an investigation.

No-one has claimed responsibility, but two US government sources said last week that US officials believed Iran had encouraged the Houthi group or Iraq-based Shia militias to carry it out.

The Houthis, who are battling a Saudi-led coalition in Yemen, said they carried out the strike on oil pumping stations in the kingdom, which did not disrupt output or exports in the world's largest crude exporter.

A Norwegian insurers' report seen by Reuters news agency said Iran's Revolutionary Guards were "highly likely" to have facilitated the attack on vessels near the UAE's Fujairah emirate, a main bunkering hub lying just outside the Strait of Hormuz.

Washington has tightened economic sanctions against Iran, trying to cut Tehran's oil exports to zero, and beefed up the US military presence in the Gulf in response to what it said were Iranian threats to US troops and interests. It has not offered details of the nature of the threat.

Crown Prince Mohammed bin Salman discussed regional developments, including efforts to strengthen security and stability, in a phone call with US Secretary of State Mike Pompeo, the Saudi Media Ministry tweeted on Sunday.

"We want peace and stability in the region but we will not sit on our hands in light of the continuing Iranian attack," Jubeir said. "The ball is in Iran's court and it is up to Iran to determine what its fate will be."

He said the crew of an Iranian oil tanker that had been towed to Saudi Arabia early this month after a request for help due to engine trouble were still in the kingdom receiving the "necessary care".

The crew are 24 Iranians and two Bangladeshis.

Saudi Arabia and Shia Iran are arch-adversaries in the Middle East, backing opposite sides in several regional wars.

Iranian Foreign Minister Javad Zarif has dismissed the possibility of war erupting, saying Tehran did not want conflict and no country had the "illusion it can confront Iran".

In a sign of the heightened tension, Exxon Mobil evacuated foreign staff from an oilfield in neighbouring Iraq.

Bahrain on Saturday warned its citizens against travel to Iraq and Iran and asked those already there to return.

The Federal Aviation Administration has issued an advisory to US commercial airliners flying over the waters of the Gulf and the Gulf of Oman to exercise caution. </s> DUBAI, United Arab Emirates — Saudi Arabia said Monday two of its oil tankers were sabotaged off the coast of the United Arab Emirates in attacks that caused "significant damage" to the vessels.

One of the ships was en route to pick up Saudi oil to take to the United States.

The announcement by the kingdom's energy minister, Khalid al-Falih, came as the U.S. issued a new warning to sailors.

Emirati officials have declined to elaborate on the nature of the sabotage or say who might have been responsible.

However, the reports come as the U.S. has warned ships that "Iran or its proxies" could be targeting maritime traffic in the region, and as America is deploying an aircraft carrier and B-52 bombers to the Persian Gulf to counter alleged threats from Tehran. Iran's ambassador to the United Nations last week denied that Tehran had given a green light to its proxies to attack U.S. forces in the Middle East, accusing U.S. officials of employing "fake intelligence."

Tensions have risen in the year since President Donald Trump withdrew the United States from the 2015 nuclear deal between Iran and world powers, restoring American sanctions that have pushed Iran's economy into crisis. Last week, Iran warned it would begin enriching uranium at higher levels in 60 days if world powers failed to negotiate new terms for the deal.

In his statement, al-Falih said the attacks on the two tankers happened at 6 a.m. Sunday.

"One of the two vessels was on its way to be loaded with Saudi crude oil from the port of Ras Tanura, to be delivered to Saudi Aramco's customers in the United States," al-Falih said. "Fortunately, the attack didn't lead to any casualties or oil spill; however, it caused significant damage to the structures of the two vessels."

Saudi Arabia did not identify the vessels involved, nor did it say whom it suspected of carrying out the alleged sabotage.

A statement Sunday from the UAE's Foreign Ministry put the ships near the country's territorial waters in the Gulf of Oman, east of the port of Fujairah. It said it was investigating "in cooperation with local and international bodies." It said there were "no injuries or fatalities on board the vessels" and "no spillage of harmful chemicals or fuel."

The U.S. Navy's 5th Fleet, which oversees the region, did not immediately offer comment. Emirati officials declined to answer questions from The Associated Press, saying their investigation is ongoing.

Fujairah's port is about 85 miles south of the Strait of Hormuz, the narrow mouth of the Persian Gulf through which a third of all oil at sea is traded. The facility handles oil for bunkering and shipping, as well as general and bulk cargo. It is seen as strategically located, serving shipping routes in the Persian Gulf, the Indian subcontinent and Africa.

Sunday's incident comes after the U.S. Maritime Administration, a division of the U.S. Transportation Department, warned Thursday that Iran could target commercial sea traffic.

"Since early May, there is an increased possibility that Iran and/or its regional proxies could take action against U.S. and partner interests, including oil production infrastructure, after recently threatening to close the Strait of Hormuz," the warning read. "Iran or its proxies could respond by targeting commercial vessels, including oil tankers, or U.S. military vessels in the Red Sea, Bab-el-Mandeb Strait or the Persian Gulf." </s> MOSCOW (AP) — The world's two largest oil producers, Russia and Saudi Arabia, on Monday agreed to act together to stabilize global oil output, though it's unclear what that might entail.

Energy ministers Alexander Novak and Minister Khalid al-Falih met Monday on the sidelines of the Group of 20 nations' summit in China. A joint statement released by Russia said both ministers "recognized the need to restrain an excessive volatility of the oil market" and agreed to act together "in order to stabilize the oil market."

Novak and al-Fatih said they would chair the first Russia-Saudi task force on oil and gas in October.

Russia, which is not a member of the oil producing nations' group OPEC, this year supported calls to freeze production, but the efforts fell through after OPEC member Iran opposed the plan.

It was not clear from the joint statement what exactly Russia and Saudi Arabia would be prepared to do to help prop up the markets but the Russian minister mentioned a production freeze.

"We believe that the market right now is taking too long to balance out, it's been two years, and joint steps which were considered earlier this year including a production freeze could be a great help in helping to balance the markets as soon as possible," Russian news agencies quoted Novak as saying.

Speaking to reporters after the meeting, al-Falih, the Saudi minister, said in comments carried by the Interfax news agency that the freeze "is not the only solution" but refused to elaborate.

The price of oil jumped on the countries' statement. The U.S. contract rose 2.2 percent, or 99 cents, to $45.43 a barrel in electronic trading on the New York Mercantile Exchange.
Saudi Arabia tells its partners in the Organization of Petroleum Exporting Countries that it will not attend a planned November 28 meeting in Vienna, out of unhappiness about intransigence from Iraq and Iran with regard to production cuts.