Though Saudi oil minister’s comments have diffused traders’ sentiments, it is highly possible that OPEC members may come up with some positive measures to be taken to address the issue of the future of crude oil supplies, as most of the OPEC players and non-OPEC players, including Russian Federation, are facing steep economic challenges due to low crude oil prices.
Advertisement
Brent futures rose 56 cents, or 1.2 percent, to $47.82 a barrel, by 11:43 a.m. EDT (1543 GMT).
On Tuesday, Iranian Oil Minister Bijan Zanganeh met OPEC Secretary-General Mohammed Barkindo in Tehran and said he would support any measure to stabilize crude prices at around $50-60 per barrel.
Iran’s steep oil output growth has stalled in the past three months, new data showed, suggesting Tehran might be struggling to fulfill its plans to raise production to new highs while demanding to be excluded from any OPEC deals on supply curbs, Reuters reported.
A joint statement issued by the two oil giants after a meeting of their energy ministers in China on the sidelines of the G20 summit said they will not act immediately but hinted at the possibility of limiting output at a later stage. That is “slightly” above 4 million barrels a day, which may be achieved by the end of this year or early next year, he said.
TVC NEWS Iran signalled on Tuesday it was prepared to work with Saudi Arabia and Russian Federation to prop up oil prices as Tehran began to bargain with OPEC on possible exemptions from output limits.
“Iran supports any decision by oil producers to return stability to oil markets”. Novak also revealed hints of possible outright oil production cuts. Prices extended the rally from the previous day. “A lot of producers are trying to find customers for their own crudes”.
The meeting of the Organization of the Petroleum Exporting Countries is expected to take place in Algeria later this month. However, the oil prices have dropped since then, after some uncertainties over the agreement between the two biggest oil producing nations, especially after a meeting held in Doha in April among the world’s biggest oil producers aiming to discuss the output.
Advertisement
Its total production has risen from 2.7 million bpd to 3.85 million bpd, close to the level before global sanctions were imposed in 2012.
