Iran’s oil minister Bijan Namdar Zanganeh will participate in an informal meeting of Opec (Organization of Petroleum Exporting Countries) members next month in Algiers, a state news service reported.
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Brent crude futures were up 45 cents, or 0.9%, at $49.50/bbl by 10:15 a.m. EDT (1415 GMT), after settling down 1.8% on August 24.
Brent crude oil futures were down 52 cents at $49.15 per barrel by 0917 GMT, while U.S. West Texas Intermediate (WTI) crude was down 28 cents at $47.05 a barrel.
Crude oil has gained about 13 percent since Opec said it would meet informally to discuss prices and supply, on speculation that the group could agree to freeze output levels.
The comments of the Saudi Arabian Energy Minister put a dampener on the prospects of a meaningful interference into the market that has been steadfast by the oil oversupply for over two years.
Saudi Arabia rejected an earlier attempt by some in the Opec to freeze output at an April meeting in Doha.
Iran says it has doubled its exports of oil and gas to 2.7 million barrels per day (bpd) since signing an accord with world powers in July 2015 that removed sanctions in exchange for curbs on its nuclear programme.
However, speaking to Reuters, he said yesterday, as of now there has been no discussion of substance with regard to OPEC’s production level and said that he believes as of now there is no need for a significant intervention in the market, especially since the demand growth has been picking up all over the world.
Its total output has risen from 2.7 million bpd to 3.85 million bpd, close to the level before global sanctions were imposed in 2012.
Al-Falih said no specific production level for a freeze has been broached yet.
“All in all, it’s left the market relatively close to the $50 mark, which in my opinion, is probably as much as OPEC can ask for at this point”.
Iran’s production has risen to 3.85 million barrels a day since sanctions were eased in January, Zanganeh said this month, still less than its target for the end of this year of 4 million barrels a day.
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Amid the recent fluctuation in global crude oil rates, prices fell on Friday, in a situation of supply glut following indications from Saudi Arabia that no output freeze was in the offing. Oil suppliers want a deal to manage production, Opec’s secretary general Mohammed Barkindo told Arabic-language newspaper Al-Hayat.
