Global oil output freeze deal could be signed next month; Iran to stay out

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Photo Courtesy: Gazprom

Oil producing nations could sign a deal to freeze production next month, the Russian energy minister said, but Iran is unlikely to be a party to the agreement.

Russia, Saudi Arabia, Qatar and Venezuela met in Doha last month as oil prices fell to 10-year lows and agreed to freeze production at January levels in their effort to keep prices stable in an oversupplied world.

“In my opinion, the market is more balanced now in terms of the price, particularly owing to clear understanding of the need to keep production in line with arrangements among countries. Market uncertainty will emerge and entail higher volatility if the (oil production freeze) decision is not formalized, Tass quoted Alexander Novak as saying.

Novak also said that the final deal would exclude Iran, which is coming out from under sanctions, and is unwilling to sign up until it reaches a certain level of production.

“As long as Iran’s oil production does not reach 4 million barrels a day, it is better that we are not disturbed. We will accompany them afterwards,” Shana earlier quoted Iranian Minister of Petroleum Bijan Zangeneh as saying.

“We exported 1.75 million barrels of crude oil and gas condensates last month which is to rise to 2 million barrels in the current month,” Zangeneh added.

 

 

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