Iran optimistic on finalising OPEC deal to limit oil supplies

Dubai - United Arab EmiratesUpdated: Nov 27, 2016, 07:19 AM IST
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File photo. Photograph:(Getty)

Iran expressed optimism that the Organisation of the Petroleum Exporting Countries (OPEC) can strike a deal on limiting oil supplies after a meeting with the Alegrian representative in Tehran. 

Iranian oil minister Bijan Zanganeh said the Gulf state had plans to announce its own decision about any output curbs at the group's meeting next week.  

"We are to present our views about this proposal at the ... November 30 OPEC meeting," Zanganeh said. "The general trend and public statements suggest that OPEC can reach a viable agreement for its production and market management."

Iran "carefully studied" the proposal by the Algerian energy minister Nouredine Bouterfa on the oil production of each country. 

Media reports said the minister called for 1.1 million barrels per day (bpd) in cuts by OPEC members and decreases totalling 600,000 bpd by non-members.

"If OPEC members ... agree, oil prices will reach $50 to $55 next year and $60 by the end of the year," Bouterfa was quoted as saying.

The OPEC is working to reach a deal to limit oil output since 2008 but has faced opposition from Iran, which wants certain exemptions. 

"If we can agree, and I am optimistic, (oil) prices will increase and this is also what the world economy demands," Zanganeh said. 

(WION with inputs from Reuters)