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Iran to assess 1.1 mn barrel-a-day collective Opec cut

Opec is also proposing a 600,000 barrel a day output cut by non-Opec producers

Golnar Motevalli & Hashem Kalantari | Bloomberg 

Oil rises after Opec agrees on long-term strategy

is assessing a proposal for a collective output cut, but hasn’t announced any commitment to reduce its own production as the group tries to end disagreements about how to share the burden of supply cuts ahead of a meeting in Vienna.

Algerian Energy Minister presented a proposal for an cut of 1.1 million barrels a day during a meeting with his Iranian counterpart in on Saturday, according to an Iranian ministry official. is also proposing a 600,000 barrel a day output cut by non-producers, the official said. The two ministers discussed each country’s share of the proposed cut and Zanganeh said will assess the proposal and discuss it further at the meeting on November 30, the official said. Zanganeh, who didn’t comment on Iran’s position about cutting its own production, expressed optimism about the meeting next week, the official said.

The talks indicate that the group “can arrive at a lasting agreement on its output and market management,” Zanganeh said after the meeting, according to the Ministry’s official news service, Shana. “If we reach an agreement, I am optimistic that prices will rise and the global economy requires such conditions.” Boutarfa, the architect of the Algiers crude supply agreement in September, is on a shuttle diplomacy mission to try to resolve differences blocking the deal, particularly the question of whether and Iraq are willing to cut production. He is also due to meet with the Iraqi minister next week. 

An production cut would help the price to rise to $55-$60 a barrel, Boutarfa said, according to the Iranian ministry official. If no agreement is reached in next week, the price may remain under $50 a barrel, he said. 

All members accepted the decisions adopted in Algiers, which proposed that the group’s production be reduced to a range of 32.5 million barrels a day and 33 million barrels, Zanganeh said, according to Shana. “Right now the debate revolves around how to divide” the production cuts, he said.

In a surprise move, Saudi Arabia pulled out of talks planned for Monday with non-producers including because it wants to secure an deal first. The meeting was later canceled and members called instead for internal talks to try to resolve their own differences ahead of the ministerial meeting on November 30.

The setback suggests that Saudi Arabia remains split from its two biggest Middle Eastern rivals at the Organization of Petroleum Exporting Countries. insists it should be allowed to restore output to pre-sanctions levels, while it remains unclear if Iraq is still disputing the supply estimates that would provide the basis for any cuts. 


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Iran to assess 1.1 mn barrel-a-day collective Opec cut

Opec is also proposing a 600,000 barrel a day output cut by non-Opec producers

Opec is also proposing a 600,000 barrel a day output cut by non-Opec producers
is assessing a proposal for a collective output cut, but hasn’t announced any commitment to reduce its own production as the group tries to end disagreements about how to share the burden of supply cuts ahead of a meeting in Vienna.

Algerian Energy Minister presented a proposal for an cut of 1.1 million barrels a day during a meeting with his Iranian counterpart in on Saturday, according to an Iranian ministry official. is also proposing a 600,000 barrel a day output cut by non-producers, the official said. The two ministers discussed each country’s share of the proposed cut and Zanganeh said will assess the proposal and discuss it further at the meeting on November 30, the official said. Zanganeh, who didn’t comment on Iran’s position about cutting its own production, expressed optimism about the meeting next week, the official said.

The talks indicate that the group “can arrive at a lasting agreement on its output and market management,” Zanganeh said after the meeting, according to the Ministry’s official news service, Shana. “If we reach an agreement, I am optimistic that prices will rise and the global economy requires such conditions.” Boutarfa, the architect of the Algiers crude supply agreement in September, is on a shuttle diplomacy mission to try to resolve differences blocking the deal, particularly the question of whether and Iraq are willing to cut production. He is also due to meet with the Iraqi minister next week. 

An production cut would help the price to rise to $55-$60 a barrel, Boutarfa said, according to the Iranian ministry official. If no agreement is reached in next week, the price may remain under $50 a barrel, he said. 

All members accepted the decisions adopted in Algiers, which proposed that the group’s production be reduced to a range of 32.5 million barrels a day and 33 million barrels, Zanganeh said, according to Shana. “Right now the debate revolves around how to divide” the production cuts, he said.

In a surprise move, Saudi Arabia pulled out of talks planned for Monday with non-producers including because it wants to secure an deal first. The meeting was later canceled and members called instead for internal talks to try to resolve their own differences ahead of the ministerial meeting on November 30.

The setback suggests that Saudi Arabia remains split from its two biggest Middle Eastern rivals at the Organization of Petroleum Exporting Countries. insists it should be allowed to restore output to pre-sanctions levels, while it remains unclear if Iraq is still disputing the supply estimates that would provide the basis for any cuts. 


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Business Standard
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Iran to assess 1.1 mn barrel-a-day collective Opec cut

Opec is also proposing a 600,000 barrel a day output cut by non-Opec producers

is assessing a proposal for a collective output cut, but hasn’t announced any commitment to reduce its own production as the group tries to end disagreements about how to share the burden of supply cuts ahead of a meeting in Vienna.

Algerian Energy Minister presented a proposal for an cut of 1.1 million barrels a day during a meeting with his Iranian counterpart in on Saturday, according to an Iranian ministry official. is also proposing a 600,000 barrel a day output cut by non-producers, the official said. The two ministers discussed each country’s share of the proposed cut and Zanganeh said will assess the proposal and discuss it further at the meeting on November 30, the official said. Zanganeh, who didn’t comment on Iran’s position about cutting its own production, expressed optimism about the meeting next week, the official said.

The talks indicate that the group “can arrive at a lasting agreement on its output and market management,” Zanganeh said after the meeting, according to the Ministry’s official news service, Shana. “If we reach an agreement, I am optimistic that prices will rise and the global economy requires such conditions.” Boutarfa, the architect of the Algiers crude supply agreement in September, is on a shuttle diplomacy mission to try to resolve differences blocking the deal, particularly the question of whether and Iraq are willing to cut production. He is also due to meet with the Iraqi minister next week. 

An production cut would help the price to rise to $55-$60 a barrel, Boutarfa said, according to the Iranian ministry official. If no agreement is reached in next week, the price may remain under $50 a barrel, he said. 

All members accepted the decisions adopted in Algiers, which proposed that the group’s production be reduced to a range of 32.5 million barrels a day and 33 million barrels, Zanganeh said, according to Shana. “Right now the debate revolves around how to divide” the production cuts, he said.

In a surprise move, Saudi Arabia pulled out of talks planned for Monday with non-producers including because it wants to secure an deal first. The meeting was later canceled and members called instead for internal talks to try to resolve their own differences ahead of the ministerial meeting on November 30.

The setback suggests that Saudi Arabia remains split from its two biggest Middle Eastern rivals at the Organization of Petroleum Exporting Countries. insists it should be allowed to restore output to pre-sanctions levels, while it remains unclear if Iraq is still disputing the supply estimates that would provide the basis for any cuts. 


image
Business Standard
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