OPEC chief sees output cut deal in November

Discussions about individual countries' production quotas were unlikely to prove to be a insurmountable stumbling block, the head of the world's cartel of main oil-producing countries said, according to reports.

In remarks made on the sidelines of the Oil&Money conference, the Secretary General of the Organisation of the Petroleum Exporting Countries, Mohammed Barkindo, said "we expect that all the building blocks will be in place in a timely fashion for the implementation [of the output cut deal]," Reuters reported.

"The range provides flexibility – flexibility in coming to that all-inclusive decision of OPEC-14 as well as flexibility in the implementation of this decision," he added.

Neither did he anticipate the possibility that the Russian Federation might pull out, according to the same reports.

"The issue of them pulling out does not arise, because they have been at the forefront together with our member countries in the run up to Algiers. They have endorsed the decision in Algiers. As a matter of fact, Russia is sending a very high level official to the high level committee on the 29th of this month."

OPEC's next ministerial meeting was scheduled for 28 to 29 October, where the details of the already agreed to deal to cut output were expected to be hammered out.

Approval was expected to follow at the cartel's following meeting on 30 November.

In the previous week, Russian oil major Rosneft chief Igor Sechin had caused a stir by saying he would not abide by the strictures of a deal.

Barkindo reportedly also downplayed suggestions that OPEC might be moving into a more active phase of managing the oil market.

As of 1538 BST front month Brent crude oil futures were drifting lower by 0.37% to $51.29 per barrel on the ICE after having hit an intra-session high of $52.09.