Oil steady as Riyadh offers deal to Iran

Oil headed for a weekly gain after Saudi Arabia was said to have offered to reduce production if Iran agreed to freeze its output. Futures were little changed after earlier declining as much as 1.9 per cent in New York.

The kingdom would be willing to reduce its output if Iran were to agree to freeze at its current production level of 3.6 million barrels a day, according to two people familiar with the situation who asked not be identified because the talks were private.

The discussions between the two nations ended without agreement on Thursday.

Now is the right time for a deal, according to Falah Al Amri, Iraq’s governor to Opec. Prices are unlikely to climb above $50 (Dh183) a barrel unless the group reduces production, he said.

Trade volumes

West Texas Intermediate for November delivery was at $46.01 a barrel, 31 cents lower on the New York Mercantile Exchange at 2.14pm in London. The contract advanced 98 cents to $46.32 on Thursday, the highest close in two weeks. Total volume traded was about 50 per cent above the 100-day average.

Brent for November settlement fell 15 cents to $47.50 on the London-based ICE Futures Europe exchange after rising 1.8 per cent to $47.65 on Thursday. Prices were up 3.7 per cent last week. The global benchmark was at a $1.56 premium to WTI.

Oil has fluctuated since August’s rally on speculation Opec countries and Russia will agree on ways to stabilise the market when they meet on September 28.