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Iran optimistic on OPEC deal after meeting Algerian minister

OPEC deal

If members can reach a consensus, Algeria’s energy minister says the proposed OPEC deal could mean $60 oil by the end of 2017.

OPEC deal could see 1.7 million b/d cut

DUBAI, Nov 26 (Reuters) – Iran is optimistic an OPEC deal on limiting oil supplies can be reached and plans to announce its own decision about any output curbs at the group’s meeting next week, Iranian Oil Minister Bijan Zanganeh said on the ministry’s official website SHANA.

“The proposal of Algerian Energy Minister (Nouredine Bouterfa) on the production of each country was presented today and carefully studied,” Zanganeh was quoted as saying on Saturday after meeting Bouterfa in Tehran.

Bouterfa said Algeria’s proposals called for 1.1 million barrels per day (b/d) in cuts by OPEC members and decreases totalling 600,000 b/d by non-members, SHANA reported.

“If OPEC members … agree, oil prices will reach $50 to $55 next year and $60 by the end of the year,” Bouterfa was quoted as saying.

The Organization of the Petroleum Exporting Countries is moving closer toward finalising its first deal to limit oil output since 2008 but Iran has been a stumbling block because it wants exemptions as it tries to regain oil market share following the easing of Western sanctions in January.

“We are to present our views about this proposal at the … Nov. 30 OPEC meeting,” Zanganeh said. “The general trend and public statements suggest that OPEC can reach a viable agreement for its production and market management.”

“If we can agree, and I am optimistic, (oil) prices will increase and this is also what the world economy demands.”

(Reporting by Dubai newsroom; editing by David Clarke)

Posted in: Energy News

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