Saudi might agree to freeze in oil production if Iran did so too, report says

Saudi Arabia might be willing to sign-up to a Venezuelan proposal that producer countries from the Organisation of the Petroleum Exporting Countries and those from outside ‘freeze’ their oil output at current levels if Iran also signed up to such an agreement, Reuters reported.

Venezuela’s oil minister, Eulogio del Pino, wants to schedule a meeting for before OPEC’s next regularly scheduled summit in June if there is a sufficient consensus on a either a co-ordinated cut in supplies or at least a ‘freeze’ on current output, one source familiar with the matter told the newswire.

According to the same source, Qatar and the Russian Federation had given their initial agreement.

Saudi Arabia was reportedly open to such an agreement following a meeting between its own oil minister and Venezuela’s held last Sunday, in Riyadh.

However, talks were described as being at an ‘early stage’ and Saudi would refuse to commit unless Tehran did so as well.

“If the Iranians are willing to stick to, let’s say, the rise of 300,000 barrels per day they said they have already committed to Europe and if US shale production has slowed, then yes, a production freeze would be a positive sign to the market,” the source added.

As of 14:34 GMT front month Brent crude futures were trading down by 1.51% to $30.39 per barrel on the ICE, while West Texas Intermediate was 2.43% lower at $26.80.