Media: countries within and outside OPEC, to discuss a proposal to freeze production

Media: countries within and outside OPEC, to discuss a proposal to freeze production


LONDON, 11 February. The countries not included in OPEC, discussing the proposal of Venezuela on the freezing of oil production at current levels to maintain prices. This was reported by the Reuters Agency, citing informed sources. According to them, Saudi Arabia is leaning towards a positive position on this issue, but Iran is skeptical, as it expects to increase its exports after the recent lifting of sanctions.

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A proposal to freeze production pushed the oil Minister of Venezuela, Eulogio del Pino during his recent tour, during which he visited Russia, Iran, Qatar and Saudi Arabia. “The Minister of oil of Venezuela wants to organize a meeting on the eve of the scheduled for June OPEC meeting, if an agreement was reached regarding the reduction of production levels or at least freeze it”, – quotes Reuters words of the source. “While the proposal of Venezuela was met with openness by Saudi Arabia, negotiations are at an early stage, and Riyadh will not give commitments until until Iran agrees to limit volumes of deliveries” – continues the Agency.

“Currently, there are discussions that are soon to hold a meeting, which will also raise the issue about the freezing of production,” notes Reuters. “The source added that at least Russia and Qatar have given their prior consent, provided that among producing countries to reach consensus” – continues the Agency.

“All production is now at maximum capabilities, with the exception of Iran,” the source said. “If the Iranians want to increase production at the planned level of 300 thousand barrels per day, which according to them, they have already given a commitment Europe, and if the production of shale oil in the US will slow down, then freeze the production will be a positive sign for the market. This will help the price to rise, – said the source. But it would be a temporary solution, and it worked, it takes guts”.

A source in OPEC said that reaching agreement will be difficult. “I doubt that will be easy to negotiate because it will be a very sensitive issue for some countries,” he said.