Iran to reject Saudi-Russia proposal to increase oil production

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India, the world's third-biggest oil consumer and importer, on Wednesday urged Opec nations to fill a supply gap and ensure sustainable oil prices as politics affect the output of some producers.

Bailey, however, said he anticipates the level of production will likely hold, because oil giants like Saudi Arabia - the de facto leader of OPEC - don't want to see prices fall.

Zanganeh has said that if OPEC returned to regular compliance, the group would raise output by around 460,000 bpd.

After sitting down with several counterparts, Iranian Minister Bijan Namdar Zanganeh said he was optimistic about the outcome of the OPEC meeting, a marked contrast to comments on Tuesday when he said a deal was unlikely. But some cartel members will struggle to increase their output.

"Yergin said Saudi Arabia and the United Arab Emirates support the current, tougher US policy toward Iran, Saudi Arabia's rival for influence in the region, and so will want to support Trump's call for lower prices".

The meeting continued for around two hours after Zanganeh left.

"So if OPEC members supply 1 million bpd to the market, there will be no problem and no need to boost production", he noted. "More oil on the market means relatively lower prices for consumers".

Brent oil prices were down 2 percent LCOc1 on Thursday.

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Production has been subdued in recent months due to unexpected outages in Venezuela, Libya and Angola.

The correction in prices have been a continuing trend since May 23, when prices breached the $80 mark after the announcement of new USA sanctions on Iran and ongoing supply disruptions in Libya and Venezuela.

Saudi Arabia's oil minister says officials from major crude-producing nations will discuss a proposal to increase output by about 1 million barrels per day.

Falih said the oil market had now rebalanced and his aim was to prevent a shortage of crude in future that could squeeze the market. The U.S. benchmark in May hit its highest level in three and half years, at $72.35 a barrel.

A further 10 countries agreed to participate in Opec's supply cuts, with Russia, Kazakhstan and Mexico as the leading producers.

By avoiding setting individual country targets, the deal appears to give Saudi Arabia the leeway to produce more than its official OPEC target and fill the gap left by those like Venezuela who can not pump enough to meet their official allocation. Sources said a production rise of about 1 million bpd was emerging as a possible consensus for OPEC and its allies, adding that Iran could assent under certain conditions.

In 2006-2008 and again in 2011-2014, surging oil prices resulted in a sharp slowdown in consumption growth in the advanced economies, though at the time many analysts dismissed signs of a slowdown.

OPEC sources also said Iran had demanded that US sanctions be mentioned in the group's post-meeting communique, as Tehran has blamed USA measures for the recent rise in oil prices. Sources said Saudi Arabia did not want to be seen as putting too much pressure on Iran and hence Russian Federation could instead try to convince Tehran.