The world’s leading oil exporters, Russia and Saudi Arabia, agreed on Tuesday to freeze their production levels, but said the move will depend on other countries, a sticking point with Iran, to join absent from the talks and determined to raise output.
the oil ministers of Russia, Saudi Arabia, Qatar and Venezuela announced the proposal after an unscheduled meeting in Doha. It could be the first joint agreement between members and non-members of the Organization of Petroleum Exporting Countries (OPEC) in 15 years, in order to curb the growing oversupply and help oil prices recover from their lows in more than a decade.
the Saudi Oil Minister Ali al-Naimi said freeze production levels in January, which was near-record highs is a right decision and hopes that other producers it join.
“the reason we agreed to freeze production is simple, is the beginning of a process that will assess in the coming months and decide if we need other measures to stabilize and improve the market,” .
“we do not want significant swings in price, supply reduction, we want to meet the demand, a stable oil price,” he said.
the oil minister of Venezuela, Eulogio Del Pino, is meeting today with officials from Iran and Iraq in Tehran: “I hope that the minister of Qatar go with me to discuss with them the basis of this agreement, which is very important to stabilize the market,” he said
oil prices rose to $ 35.55 a barrel after learning of the secret meeting, but later pared gains to trade at about $ 33 on concerns of a possible refusal of Iran to the agreement and that, even if Tehran adds not help alleviate the growing global glut.
special Terms. Iran, a member of the Organization of Petroleum Exporting Countries and archrival Saudi Arabia has pledged to increase strongly its production in the coming months, seeking to recover the market share it lost after years of international sanctions were lifted in January.
“Our situation is totally different from those countries that have been producing at high levels in recent years,” said a prominent person familiar with Iran’s intentions.
the Iranian Oil Minister Bijan Zanganeh said that Iran will not freeze their production to January levels, ensuring that his country will give up not having a proper share in the oil market.
Two not close to the discussions of the Iranian OPEC said Iran could receive special terms as part of the deal.
“Iran is returning to the market and should be given a special opportunity, but you should also do some calculations” , the sources said.
the Russian Deputy Prime Minister Arkady Dvorkovich, said freeze production is not a problem for his country, and he hoped anyway that the keep pumping up the 2016 in relation to last year.
a source at the Iraqi Oil Ministry said Baghdad is also willing to freeze its oil output if all parties agree.
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