Oil deal hope dashed

HOPES of a deal to curb oil supply were dashed yesterday ahead of a meeting of Opec in Algeria as Iran rejected an offer to freeze exports.

Saudi Arabia had signalled it would back a production cut of up to one million barrels a day to tackle a global supply glut, but only if Iran agreed to freeze output at current levels. Oil prices have more than halved from 2014 due to an oversupply, making it difficult for producers to make a profit and continue exploration.

But Iran insists on having the right to ramp up its oil production to about 4.1m barrels a day, having stagnated at about 3.6m barrels a day currently.

Opec and russia are seeking a market rebalancing that would boost revenues from oil exports and help their crippled budgets.