Markets continue to monitor headlines from the Algerian meeting in wake of the tensions between Saudi Arabia and Iran, which may restrain oil producers clinching oil output deal. Iran oil minister Zanganeh has re-iterated reluctance to freeze output as of 27 Sept. Said he wants Iranian oil output to hit 4 million barrels per day (mbpd).
In stark contrast, Saudi Arabia is now offering a deal, including its first output cut in eight years, to boost prices. Saudi oil minister speaking on the side-lines of the ongoing Algerian OPEC meeting said “We are optimistic about the market. Market recovery slower than hoped, Algiers meeting is consultative”
Russian oil minister said that its “hard to predict if Algiers meeting will produce agreement to stabilize oil market.”
Iran’s reluctance could mean that no oil deal would be decided at this meeting. Oil market now has low expectations for OPEC production deal. After edging higher on Monday, oil benchmarks were back in the red on Tuesday.