Iran, Saudi Arabia oil agreement in Vienna

VIENNA, Nov. 27 (MNA) – Oil ministers of Iran and Saudi Arabia met in Vienna on Wednesday and they seem to have agreed upon the million-barrel daily OPEC cut proposal.

Iran’s Oil Minister Bijan Namdar Zanganeh upon his arrival in Vienna told reporters that OPEC members should remain committed to production quota and that Iran is not planning to cut production.

This came out as the possibility of the million-barrel daily OPEC cut has been frequently discussed on international media and even Venezuela has officially supported this cut proposal.

“Caracas government is willing to reduce its oil production and export in order to stabilize oil prices in the market,” said Venezuelan Foreign Minister Rafael Ramirez.

Meanwhile, Iran and Suadi Arabia oil ministers held a meeting in Vienna last night and it seems that these two oil rich countries have reached an agreement on the proposal of the million-barrel daily OPEC cut.

“Iran and Saudi Arabia share the same views on the 166th OPEC meeting; our positions on oil market is close to one another,” announced Zanganeh after the meeting with Saudi Arabia’s Ali Al-Naimi.

Zanganeh has also had meetings with his Iraqi and Venezuelan counterparts in Vienna.

“The Iranians are sounding moderate,” John Kilduff, a partner at Again Capital LLC, a New York-based hedge fund that focuses on energy, had said. “They just want to hold the group together. Cutting output would only give the competitors a boost.”

Currently, OPEC daily production is about 30.2mn barrels per day, but with a cut in oil production in countries such as Saudi Arabia, Iraq, Qatar, Angola, Kuwait and Nigeria in November, OPEC members are daily producing 200,000 barrels more than the set limit.

Members of OPEC, supplier of about 40 percent of the world’s oil, will meet today (Nov. 27) in the Austrian capital for its 166th session.

By Mehr News Agency

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