Saudi and Iran dash hopes for Opec oil deal in Algeria
algiers — Saudi Arabia and Iran on Tuesday dashed hopes that Opec oil producers could clinch an output-limiting deal in Algeria this week as sources within the exporter group said the differences between the kingdom and Tehran remained too wide.
“This is a consultative meeting ... We will consult with everyone else, we will hear the views, we will hear the secretariat of Opec and also hear from consumers,” Saudi Energy Minister Khalid Al Falih told reporters.
Iranian Oil Minister Bijan Zanganeh said: “It is not the time for decision-making.” Referring to the next formal Opec meeting in Vienna on November 30, he added: “We will try to reach agreement for November.”
The Organisation of the Petroleum Exporting Countries will hold informal talks at 1400 GMT on Wednesday. Its members are also meeting non-Opec producers such as Russia on the sidelines of the International Energy Forum, which groups producers and consumers.
Oil prices have more than halved from 2014 levels due to oversupply, prompting Opec producers and rival Russia to seek a market rebalancing that would boost revenues from oil exports and help their crippled budgets.
The predominant idea since early 2016 among producers has been to agree to freeze output levels, although market watchers have said such a move would fail to reduce unwanted barrels.
On Monday, Iranian Oil Minister Bijan Zanganeh said expectations should be modest and several Opec delegates said the positions of Saudi Arabia and Iran remained too far
It is not the time for decision-making. We will try to reach agreement for november Bijan Zanganeh, Iranian Oil Minister
apart. Oil prices were down more than one per cent in Tuesday trade.
Three Opec sources said Iran, whose production has stagnated at 3.6 million barrels per day, insisted on having the right to ramp that up to around 4.1-4.2 million bpd, while Opec Gulf members wanted its output to be frozen below four million.
“Don’t expect anything unless Iran suddenly changes its mind and agrees to a freeze. But I don’t think they will,” an Opec source familiar with discussions said.
Russian Energy Minister Alexander Novak was due to meet Zanganeh on Tuesday in what sources said was a new attempt to persuade Tehran to play ball.
Iranian oil sources said Tehran wanted Opec to allow it to produce 12.7 per cent of the group’s output, equal to what it was extracting before 2012, when the EU imposed additional sanctions on the country for its nuclear activities. — Reuters