FT learned about the Saudi agreement to freeze production of oil without Iran


Saudi Arabia is ready to sign an agreement on limiting oil production, even if it will not engage Iran, told the Financial Times, a senior representative of one of the OPEC countries. “Many countries agree on the freeze, so why be dependent on Iran,” — said the interlocutor of the edition.

Iran has previously said it would join the initiative to limit production, only when released on desanctions level. According to the FT, representatives of exporters from the Persian Gulf countries have doubts about Iran’s ability to dramatically increase production, they decided to go on a freezing and without his participation.

According to the interlocutor FT, now Russia “plays the leading role” in negotiations with other OPEC members. He added that its relations with Saudi Arabia have improved

According to a source publication, the price of oil by the end of the years will increase, decreasing the excess supply. He explained that exporters feel the need to correct the economic situation, and this was the catalyst for negotiations between them.

Interlocutor FT made the halt in production at the January level most likely, but possibly other options. “We will see who than was engaged in January, February and March, and then, perhaps, we will reach the numbers that will trigger more confidence on the market,” he said.

The FT notes that the mood at the OPEC exporters from the Persian Gulf has changed compared to the previous month, when they said they would agree to freeze only with the participation of Iran. On 17 April in Doha is scheduled to meet the largest exporters, who will discuss how to limit production. A preliminary agreement to freeze production at the January level was reached in February, Saudi Arabia, Russia, Qatar and Venezuela.

Last week the Minister of energy of Qatar Mohammed bin Saleh al Sada said that about 15 exporters, which account for two thirds of global oil production, have expressed support for freezing the production. OPEC Secretary-General Abdalla El-Badri, speaking on Monday at a press conference in Vienna, suggested that Iran in the future may accede to the agreement.

FT reminds that hedge funds over the last few weeks has significantly increased bets on rising oil price. According to the publication, the net long position of speculators on the American crude oil WTI on the new York Mercantile exchange and on the London exchange ICE oil grew from 12 January to 172 million barrels. with 35 million barrels.

12:55 Moscow time the price of a barrel of Brent crude oil on ICE of $41,62 that on 0,19% above the closing price.