• 3 minutes Will Iron-Air batteries REALLY change things?
  • 7 minutes Natural gas mobility for heavy duty trucks
  • 11 minutes NordStream2
  • 10 hours GREEN NEW DEAL = BLIZZARD OF LIES
  • 8 hours U.S. Presidential Elections Status - Electoral Votes
  • 20 hours Evergrande is going Belly Up.
  • 1 day Is China Rising or Falling? Has it Enraged the World and Lost its Way? How is their Economy Doing?
  • 10 hours Monday 9/13 - "High Natural Gas Prices Today Will Send U.S. Production Soaring Next Year" by Irina Slav
  • 4 days Poland Expands LNG Powered Trucking and Fueling Stations
  • 4 days World’s Biggest Battery In California Overheats, Shuts Down
  • 3 days The unexpected loss of output from wind turbines compels UK to turn to an alternative; It's not what you think!
  • 14 hours Forecasts for Natural Gas
  • 3 days Ten Years of Plunging Solar Prices
  • 3 days Extraction of gasoline from crude oil.

Tehran Gives Cold Shoulder To OPEC On Oil Output Freeze

Iran has categorically rejected the Doha proposal by four of the world’s largest producers to freeze output at January levels, ensuring that the gains oil made this morning will be lost at the close of trading today.

Oil prices were up at the opening of trading on Wednesday morning on the false hope that OPEC would succeed in getting Iran to agree to a cap on oil production.

Benchmark U.S. WTI light sweet crude traded 0.77 percent higher just below $30 per barrel before trading opened today. At the same time, global benchmark Brent crude rose 1 percent to $33.13 a barrel.

Related: Historic OPEC-Russia Agreement Will Have Minimal Impact

At the opening of trading yesterday, Brent crude prices had passed $35 per barrel ahead of expectations for a solution at Doha, but dropped by 3 percent to $32.38 per barrel after the announcement that four producers agreed to freeze output at January levels.

Saudi Arabia, Russia, Venezuela and Qatar had agreed to cap oil output at January levels in order to stabilize the market, but the deal was contingent upon other major producers following suit.

This morning, the energy ministers of Venezuela, Iran, Iraq and OPEC president Qatar met in Tehran to convince both Iran and Iraq to agree to the freeze.

Related: Downturn Now Hitting The Refining Sector

Iranian officials have now said that they have no intention of freezing output at a time when they have plans to ramp up production by 500,000 barrels per day.

Iranian OPEC envoy Mahdi Asali said Iran would continue to pump more with the goal of achieving pre-sanctions crude output levels.

Freezing production at January levels would have little to no effect as those levels were already too high. In January, both Saudi Arabia and Russia were pumping at record levels.

By James Burgess of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News