Crude Oil Price Talks Finally Get Support from Iran

Published at 08:49AM - 19/09/16

Iran has announced it is willing to support any measures to boost crude oil prices discussed during the Organisation of Petroleum Exporting Countries’ (OPEC) meeting next week.

According to Iran’s oil minister, Hassan Rouhani, Iran will welcome any decisions to improve stability and prices “based on justice, fairness and fair quota of all the oil producers”.

“Instability and falling oil prices are harmful to all countries, especially oil producers,” he told the Iranian press.

Crude Oil Price Talks Finally Get Support from Iran

Venezuelan President Nicolas Maduro also held discussions with OPEC members Saudi Arabia and Iran and said he hopes that an agreement is reached by the end of this month. According to the president, such agreement is now “close”.

“President Maduro: We are nearing an agreement between OPEC and non-OPEC countries to stabilise the market,” the state-owned oil company PDVSA posted on its Twitter page.

Crude Oil Prices Talk Gets Support from Iran
President of Venezuela Nicolas Maduro

A more “definitive” answer could come before the end of this month, the president added.

Saudi Arabia and Russia had already agreed to cooperate on the possible limitation of the countries’ future crude output.

Expectations Remain High for OPEC Meeting

However, on Saturday, the Secretary-General of OPEC, Mohammed Barkindo said that the next OPEC meeting would be for consultation only and not decision-making.

The meeting will take place in Algiers on September 27, on the sidelines of the International Energy Forum, gathering ministers from OPEC and non-OPEC members.

Already, there is speculation that the meeting could give rise to an agreement on an output cap to boost prices.

If this happens, OPEC could call a special meeting,  Barkindo explained.

Iran, OPEC’s third-largest producer, has been trying to raise output after Western sanctions were lifted in the beginning of this year.

Around that time, the country refused to join OPEC’s attempt to stabilise production, which had led to uncertainty that the same decision would follow through this time around.