ALGIERS: Iran downplayed on Monday the chances of Opec and non-Opec oil producers clinching an output-restraint deal in Algeria this week even though several other members of the group said they still hoped for steps to tackle a price-eroding glut of crude.
The predominant idea since early 2016 among producers has been to agree to limit output, although market watchers have said such a move would fail to reduce unwanted barrels. Sources told Reuters last week that Saudi Arabia had offered to reduce its output if Iran agreed to freeze production, a shift in Riyadh’s position as the kingdom had previously refused to discuss output cuts.
As delegations gathered in Algiers, Iranian Oil Minister Bijan Zanganeh said expectations should be modest.
“This is an advisory meeting and that’s all we should expect from it,” he was quoted as saying by oil ministry news service SHANA before he left for Algiers. Some ministers and officials expressed hope that a deal could emerge this week.
“For us in the UAE, we are for a decision. We think a freeze will help if it is agreed. We hope that all are going to agree,” the United Arab Emirates’ energy minister, Suhail Bin Mohammad Al Mazroui, told Reuters.
Algerian Energy Minister Noureddine Bouterfa said everyone in the Organization of the Petroleum Exporting Countries agreed that the market was badly oversupplied and the situation had worsened since the last Opec meeting in June.
“Credible and significant action is needed to help the market rebalance ... One fundamental aspect is that Opec production should be significantly below the level of August.”
