Russian hints it is close to reaching agreement with OPEC

Russia has confirmed today the possibility of reaching an agreement with the

Organisation of the Petroleum Exporting Countries (OPEC) regarding the production cut.

There is also talk about a proposal by OPEC to set Iran’s production to levels less than three million barrels a day.

Russian Energy Minister Alexander Novak said that he is “quite optimistic” the OPEC oil cartel will reach agreement later this month on a planned output cut to shore up prices.

He also said today, after a meeting with his OPEC member counterparts, that he had a fruitful meeting with Saudi Energy Minister Khalid Al-Falih in Doha, which is hosting the OPEC summit.

Novak also told reporters that a production cut is an option that is still being discussed, but he refused to go into details or to reveal the level at which production would be cut.

He expected that the demand for oil would grow, noting that production cuts would help the market regain its balance.

“I believe that the consultations of technical experts, which are going to be held soon, and other consultations ahead of the 30 November meeting… would result in an agreement,” he said.

An informed source said that the members of OPEC proposed a production cut for Iranian oil at 3.92 barrels a day in the context of limiting the production of the entire organisation.

The source told Reuters that Iran has not yet responded to this proposal, and has sent contradicting messages, saying that it would agree to a production freeze between four and 4.2 million barrels per day.

This number means that the OPEC members may be close to agreeing on Iran’s production.

According to the Qatari Energy Minister, Mohammed Saleh Al Sada, Iraq and Iran have been asked to freeze their output at their current levels.