Rouhani: Iran supports stabilization of oil market

Lucy Nicholson

"Broadly speaking, there continues to be no firm indication that OPEC could convince all members to freeze production at current output levels", said Robbie Fraser, commodity analyst at Schneider Electric.

Earlier on Tuesday, Barkindo also met with Iranian Minister of Petroleum Bijan Namdar Zanganeh, who reaffirmed his commitment to help the organization to stabilize oil market.

Global oil prices have slipped to 47 U.S. dollars per barrel on receding hopes for imminent action to tackle a supply glut.

"Most oil market analysts are very skeptical about the chances of an agreement", said Mike Wittner, head of oil-market research at Societe Generale SA in NY.

Slower second quarter growth in the European economy, coupled with a more measured look at production rumors, brought oil prices lower early Tuesday. Iranian output is approaching its pre-sanctions target, Mohsen Ghamsari, director for global affairs at the National Iranian Oil Co., said Wednesday.

OPEC and other producers can reconcile talks aimed at stabilizing the oil market with the prerogative of Iran, Nigeria and Libya to boost output, according to Algeria's energy minister.

Saudi Arabian and Russian Federation this past Monday that they would form a strategic energy partnership created to help stabilize oil markets - a partnership which could envisage freezing oil output to help stabilize the prices.

"Iran's condition appears to be that OPEC must agree to allow Iran to return to its historical OPEC export quota and pre-sanction production levels - a hard ask", they wrote in a note.

Iran agreed to cooperate with the deal only if fellow exporters recognised its right to increase market share to past levels at a time when no nuclear-related sanctions were imposed.

Iraq, OPEC's second largest producer, also chimed in when Falah Al-Amri, director general of Iraq's Oil Marketing Company (SOMO), said that Iraq would support a freeze "for a certain period".

A previous attempt to freeze output in April fell through when Saudi Arabia insisted that Iran join before its output had recovered to levels seen before world powers tightened sanctions on Iran's economy.

The country's seen pumping 10.9 million barrels a day in 2016, and 11.3 million next year, Jonathan Kollek, the head of Eurasia at oil trader Trafigura Group, said at APPEC in Singapore on Wednesday.

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