Saudi Arabia and Russian Federation, the world’s top two crude-oil producers, this week pledged to cooperate to stabilize global markets, while failing to announce any specific measures to bolster prices.
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Meanwhile, Director for International Affairs at NIOC (National Iranian Oil Company), Seyed Mohsen Ghamsari said that that Iran is ready to raise its oil production to 4 million barrels per day (bpd) in the next two to three months depending on market demand.
Tehran said it needed to first regain market share lost while it was under sanctions.
Brent had jumped 5 percent on Monday, after Saudi Arabia and Russian Federation agreed to cooperate in world oil markets. Traders said US crude was supported by Genscape data showing a draw of some 700,000 barrels last week at the Cushing, Oklahoma, delivery hub for USA crude futures.
Iran had previously made it clear that it would not join an oil freeze plan promoted by Saudi Arabia.
Libya’s production also dropped by 40, 000 bpd to 260, 000 bpd as the country’s political factions continued to fight over the control of oil export terminals.
Although no formal agreement was mentioned on freezing production levels, a move that could help to support global oil prices which slumped on an glut in supply, the agreement was seen as “meaningful” by analysts as it marked a further step towards putting a floor under oil prices.
Meanwhile the Algerian Energy Minister, Noureddine Bouterfa, has told the media that OPEC members have reached an agreement to have a crude price between 50$ to 60$ per barrel and he has arranged for Iran’s cooperation in Algeria talks.
The Niger Delta Avengers, a militant organization, declared an end to attacks on Nigerian oil infrastructure, according to a statement last month on a website that said it represents the group. Prices have since fallen due to uncertainty over a deal, particularly after a meeting in Doha in April among the world’s largest producers to discuss output ended in failure.
An informal meeting between OPEC and other producing nations is set for the last week of September in Algeria.
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The country is getting closer to reaching its goal of 4 million barrels a day of output, the level it had before Western sanctions on its nuclear program- lifted this year-crippled its oil industry. “We believe that the oil market rebalancing has been rather delayed”.
