Barkindo, for his part, stressed that the role of Iran in OPEC is very high, underlining the importance of cooperation between the cartel members in the process of tackling problems that occurred in the market.
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“Expect any emerging details surrounding OPEC coordination to continue to be a short-term price driver until their informal meeting later this month”. “He said that Iran wants a stable market and therefore any measure that helps the stabilization of the oil market is supported by Iran”, the OPEC press release said.
“Even if successful, an OPEC freeze would likely be a short term positive but a medium term negative for oil price”.
Oil producers are looking to stabilize crude oil prices in the range of $50 to $60 a barrel and they know that without any fundamental action, prices are unlikely to reach their desired level. Iranian output is approaching its pre-sanctions target, Mohsen Ghamsari, director for global affairs at the National Iranian Oil Co., said Wednesday.
The comments come after major oil producers Russian Federation and Saudi Arabia said Monday they would form a strategic energy partnership created to help stabilize oil markets.
Later this month, a meeting by the Organization of the Petroleum Exporting Countries is set to discuss a coordinated output agreement.
Global benchmark Brent crude fell nearly 1 percent on Tuesday as hopes waned for an agreement between two of the biggest oil producers to freeze output to tackle a global supply glut.
The previous attempt at reaching a deal in April was scuppered by OPEC member Iran’s refusal to agree to any output freeze, and there are worries about the chances of an agreement in Algiers.
Few analysts believe OPEC will be successful in making price gains last, especially when the biggest crude exporters such as Saudi Arabia and Iran are pumping all they can in a fight to raise market share.
A deal with Iran may be a “headwind” for a greater production deal, according to Morgan Stanley analysts, especially with Iran ramping up output.
Russia’s daily oil production approached 11 million barrels in recent months, hitting a record high since 1991, authorities said on Wednesday.
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It is clear there is widespread backing for a production freeze among numerous world’s largest oil exporters, but the chances of it being agreed in Algiers or through Saudi-Russian cooperation by the end of this year are slim.
