OPEC moves closer to oil output deal as Iran gets new offer

Fri Nov 18, 2016 7:33am EST
 
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By Rania El Gamal, Tom Finn and Katya Golubkova

DOHA (Reuters) - OPEC is moving closer toward finalizing this month its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes, ministers and sources said on Friday.

Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.

Iran's rival Saudi Arabia, the biggest producer in the Organization of the Petroleum Exporting Countries, has argued Iran's output has peaked and it should not be granted major concessions.

On Friday, several OPEC oil ministers including Saudi Arabia's Khalid al-Falih met in Doha on the sidelines of a gas forum. Iranian officials attended the gathering although minister Bijan Zanganeh did not come.

At the meeting, OPEC member countries proposed Iran cap its oil output at 3.92 million barrels per day (bpd), a source familiar with the proposal told Reuters.

Iran has previously said it would accept a freeze at between 4.0 and 4.2 million bpd.

Gulf OPEC sources have said they wanted Iran to cap output at around 3.6-3.7 million bpd - the volume the Islamic Republic is currently producing, according to OPEC estimates.

The source said Tehran had yet to respond to the proposal.   Continued...

 
A person carrying an umbrella walks by the Ogranization of the Petroleum Exporting Countries (OPEC) headquarters in Vienna, Austria October 4, 2016. REUTERS/Heinz-Peter Bader