The company faces no technical or operational reasons to restrict or cut output, state news agency Mehr cited Managing Director Ali Kardor as saying.
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Oil prices fell about 1 percent earlier in the day with the dollar holding firm as disappointing U.S.jobs growth data did little to change investors’ perception that the Federal Reserve is likely to raise interest rates in coming months. “A general consensus on output levels and higher prices might win nods and endorsements but securing full compliance with sacrifice of national self-interest from both OPEC and non-OPEC producers to achieve collective goals may prove more elusive”.
Singapore, Sep 5: Oil prices slipped in Asia today with traders disappointed by a lack of detail from Russian Federation and Saudi Arabia on their plans to stabilise the crude market following talks at the weekend.
The announcement was made by the countries’ energy ministers, Alexander Novak and Khalid al-Falih.
But there were few firm details in the announcement, which comes just weeks before Moscow and the Organisation of the Petroleum Exporting Countries (OPEC) meet in Algeria to discuss the crisis. While it has recovered recently, it is still well off highs above $100 seen in mid-2014.
London Brent crude for November delivery LCOc1 was down 18 cents at $46.65 a barrel by 2245 GMT (6.45 p.m. ET) on Sunday. West Texas Intermediate, the USA marker, was up 1.8% at $45.23/bbl.
The oil market has been plagued by a stubborn supply glut that saw prices plunge to near 13-year lows below $US30.00 ($39.55) at the start of 2016. “The ministers recognized the need to restrain excessive oil market volatility, which has a negative effect on global economic growth and long-term stability”.
“There’s only a small chance that Iran will participate in an output freeze plan along with other producers including Saudi Arabia and Russia”, Hong Sung Ki, a commodities analyst at Samsung Futures Inc., said by phone.
Cooperation between Russian Federation and Saudi Arabia will bring benefits to the global oil market, Saudi Arabia’s powerful deputy crown prince Mohammed bin Salman told Putin on Sunday.
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They said they would work to address a global glut and overproduction that has hammered prices for the past two years. “That would probably be the last thing they want as long as Iran is raising output”.
