After oil prices rose in the previous session as much 8%, commentators suggested markets had overreacted to Iran’s support for the caps and said the Russian-Saudi move was not likely to reduce the global surplus.
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Venezuelan Oil Minister Eulogio Del Pino, Iraqi Oil Minister Adel Abdel Mahdi and Qatari Energy Minister Mohammad bin Saleh al-Sada sat down with Zanganeh at 3 p.m. (1130 GMT).
“The whole point of the nuclear deal was to allow them to pump more oil”, Steven Kopits, managing director of the consulting firm Princeton Energy Advisors, said Tuesday, predicting the Iranians “will not go along”. So unless Iran also commits, it could put the agreement on hold.
“We will of course follow developments closely today and in the coming days but this deal leaves plenty of room for disappointment” Jessop added.
Investors are also eyeing USA oil inventory data later on Wednesday and on Thursday for further direction on prices, with a poll of analysts forecasting a gain of 3.9 million barrels in crude oil stocks last week.
OPEC’s original strategy of maintaining high production envisioned a modest and brief drop in prices that would quickly curb output from USA shale formations and other high-cost producers and then restore the organisation’s market share.
However, two non-Iranian sources close to OPEC discussions told Reuters that Iran may be offered special terms as part of the output freeze deal.
Before the sanctions took effect in 2012, Iran exported 2.5 million barrels a day, a figure that the United Nations and Western sanctions cut to about 1.1 million. “Should this happen, we would think that this could be the start of USA production cuts due to low oil prices”, Singapore’s Phillip Futures said in a note.
“Not only has production been frozen at January 2016 record levels, which will have a minuscule impact on the excessive oversupply, the meaningless freeze is only valid on the premise of other producers joining in”, he said.
Iran’s IRNA news agency said on Sunday the country had exported its first crude shipment to Europe since it reached a landmark deal a year ago with world powers.
COMEX silver rose 0.04% or a cent to $15.34 an ounce, while spot platinum rose 1.81% or $16.85 to $947.30 an ounce.
When OPEC met in December, Iran said it would not cut oil production after worldwide sanctions were lifted on the country last month.
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According to the IEA, Saudi Arabia produced 10.2 million barrels a day in January, below the most recent peak of 10.5 million barrels a day set in June 2015.
