March 10, 2016

KNOWING YOUR ALLIES:

Oil meeting on output freeze unlikely without Iran progress: sources (RANIA EL GAMAL AND ALEX LAWLER, 3/10/16, Reuters)

[T]he biggest roadblock to a wider deal, OPEC delegates say, is Iran. Tehran feels it should be exempt from the agreement as it wants to recover market share it lost under Western sanctions. Kuwait said on Tuesday it will commit to the deal - if all major producers including Iran do so.

"They are not agreeing on the meeting. Why would the ministers meet again now? Iran says they will not do anything," said an OPEC source from a major producer. "Only if Iran agrees, things will change." [...]

Tehran has rejected freezing its output at January levels, put by OPEC secondary sources at 2.93 million barrels per day (bpd), and wants to return to much higher pre-sanctions production.

"Tehran wanted a freeze ... for them to be based on 4 million barrels per day, their pre-sanctions production figure," said one source familiar with the discussions. A source familiar with Iranian thinking agreed.

Posted by at March 10, 2016 6:22 PM

  

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