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OPEC begins debate on oil cuts amid deep disagreement

Reuters  |  VIENNA 

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - began on Wednesday debating a deal to curtail production and prop up the price of crude, with and Iraq resisting pressure from to participate fully in any action.

Ministers from the Organization of the Petroleum Exporting Countries started an informal at 0700 GMT at the Vienna Park Hyatt hotel and were due to begin a formal gathering at headquarters at 0900 GMT.

"There will be an agreement today," an Iraqi delegate said as he entered the hotel.

"I'm optimistic," said Iranian Minister Bijan Zanganeh, adding there had been no request for to cut output.

On Tuesday, wrote to saying it wanted to cut production by as much as 1 million barrels per day (bpd), much more than Riyadh is willing to offer, sources who saw the letter told Reuters.

The 14-country group, which accounts for a third of global production, made a preliminary agreement in Algiers in September to cap output at around 32.5-33 million bpd versus the current 33.64 million bpd to prop up prices, which have halved since mid-2014.

said it would exempt Iran, Libya and Nigeria from cuts as their output has been crimped by unrest and sanctions.

The deal was seen as a victory for Iran. Tehran has long argued it wants to raise production to regain market share lost under Western sanctions, when its political arch-rival increased output.

In recent weeks, Riyadh changed its stance and offered to cut its output by 0.5 million bpd, according to sources, while suggesting limit production at around 3.8 million bpd - in line with or slightly above the country's current output.

Tehran has sent mixed signals, saying it wanted to produce as much as 4.2 million bpd. Iran's letter to suggested should cut output to 9.5 million bpd.

Iraq has also been pressing for higher output limits, saying it needs more money to fight the militant group Islamic State. and Iraq together produce over 8 million bpd, only slightly behind long-time leader Saudi with 10.5 million bpd.

The argument between Iraq and mainly focuses on whether Baghdad should use its own output estimates to limit production or rely on lower figures from OPEC's experts.

Brent crude rose 1.5 percent on Wednesday to more than $47 a barrel after heavy losses a day earlier. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

(Additional reporting by Vladimir Soldatkin, Shadia Nasralla and Lisa Barrington; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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OPEC begins debate on oil cuts amid deep disagreement

VIENNA (Reuters) - OPEC began on Wednesday debating a deal to curtail oil production and prop up the price of crude, with Iran and Iraq resisting pressure from Saudi Arabia to participate fully in any action.

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - began on Wednesday debating a deal to curtail production and prop up the price of crude, with and Iraq resisting pressure from to participate fully in any action.

Ministers from the Organization of the Petroleum Exporting Countries started an informal at 0700 GMT at the Vienna Park Hyatt hotel and were due to begin a formal gathering at headquarters at 0900 GMT.

"There will be an agreement today," an Iraqi delegate said as he entered the hotel.

"I'm optimistic," said Iranian Minister Bijan Zanganeh, adding there had been no request for to cut output.

On Tuesday, wrote to saying it wanted to cut production by as much as 1 million barrels per day (bpd), much more than Riyadh is willing to offer, sources who saw the letter told Reuters.

The 14-country group, which accounts for a third of global production, made a preliminary agreement in Algiers in September to cap output at around 32.5-33 million bpd versus the current 33.64 million bpd to prop up prices, which have halved since mid-2014.

said it would exempt Iran, Libya and Nigeria from cuts as their output has been crimped by unrest and sanctions.

The deal was seen as a victory for Iran. Tehran has long argued it wants to raise production to regain market share lost under Western sanctions, when its political arch-rival increased output.

In recent weeks, Riyadh changed its stance and offered to cut its output by 0.5 million bpd, according to sources, while suggesting limit production at around 3.8 million bpd - in line with or slightly above the country's current output.

Tehran has sent mixed signals, saying it wanted to produce as much as 4.2 million bpd. Iran's letter to suggested should cut output to 9.5 million bpd.

Iraq has also been pressing for higher output limits, saying it needs more money to fight the militant group Islamic State. and Iraq together produce over 8 million bpd, only slightly behind long-time leader Saudi with 10.5 million bpd.

The argument between Iraq and mainly focuses on whether Baghdad should use its own output estimates to limit production or rely on lower figures from OPEC's experts.

Brent crude rose 1.5 percent on Wednesday to more than $47 a barrel after heavy losses a day earlier. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

(Additional reporting by Vladimir Soldatkin, Shadia Nasralla and Lisa Barrington; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

OPEC begins debate on oil cuts amid deep disagreement

By Rania El Gamal and Alex Lawler

VIENNA (Reuters) - began on Wednesday debating a deal to curtail production and prop up the price of crude, with and Iraq resisting pressure from to participate fully in any action.

Ministers from the Organization of the Petroleum Exporting Countries started an informal at 0700 GMT at the Vienna Park Hyatt hotel and were due to begin a formal gathering at headquarters at 0900 GMT.

"There will be an agreement today," an Iraqi delegate said as he entered the hotel.

"I'm optimistic," said Iranian Minister Bijan Zanganeh, adding there had been no request for to cut output.

On Tuesday, wrote to saying it wanted to cut production by as much as 1 million barrels per day (bpd), much more than Riyadh is willing to offer, sources who saw the letter told Reuters.

The 14-country group, which accounts for a third of global production, made a preliminary agreement in Algiers in September to cap output at around 32.5-33 million bpd versus the current 33.64 million bpd to prop up prices, which have halved since mid-2014.

said it would exempt Iran, Libya and Nigeria from cuts as their output has been crimped by unrest and sanctions.

The deal was seen as a victory for Iran. Tehran has long argued it wants to raise production to regain market share lost under Western sanctions, when its political arch-rival increased output.

In recent weeks, Riyadh changed its stance and offered to cut its output by 0.5 million bpd, according to sources, while suggesting limit production at around 3.8 million bpd - in line with or slightly above the country's current output.

Tehran has sent mixed signals, saying it wanted to produce as much as 4.2 million bpd. Iran's letter to suggested should cut output to 9.5 million bpd.

Iraq has also been pressing for higher output limits, saying it needs more money to fight the militant group Islamic State. and Iraq together produce over 8 million bpd, only slightly behind long-time leader Saudi with 10.5 million bpd.

The argument between Iraq and mainly focuses on whether Baghdad should use its own output estimates to limit production or rely on lower figures from OPEC's experts.

Brent crude rose 1.5 percent on Wednesday to more than $47 a barrel after heavy losses a day earlier. [O/R]

Some analysts including Morgan Stanley and Macquarie have said prices will correct sharply if fails to reach a deal, potentially going as low as $35 per barrel.

(Additional reporting by Vladimir Soldatkin, Shadia Nasralla and Lisa Barrington; Writing by Dmitry Zhdannikov; Editing by Dale Hudson)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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Business Standard
177 22

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