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OPEC countries disagree over Iran’s current oil production level

OPEC member-states cannot agree whether Iran has reached the oil production ceiling, Russian energy minister told reporters

© EPA/BARBARA GINDL

HANGZHOU /China/, September 5. /TASS/. OPEC member-states disagree over the fact whether Iran has reached the oil production level that was before the sanctions or it has not, Russian Energy Minister Alexander Novak told reporters.

"There are some disagreements on the figures within OPEC. This is a normal, standard situation. Therefore they (the countries of the OPEC - TASS) meet twice a year to discuss within OPEC the situation with production, plans, "ceiling"," he said.

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Russia and Saudi Arabia discussing oil output freeze for 3 or 6 months — minister

The Minister also said that Iran may join the "freeze" of oil production after it brings its oil production to the level that was before the sanctions.

On Monday, on the sidelines of the G20 summit in China, Russia and Saudi Arabia, which control more than 21% of global oil consumption, signed a joined statement on measures to stabilize the oil market. Among possible measures they named the "freeze" of oil production.

In April, representatives of 18 oil-producing countries met in Doha (Qatar). Iran refused to discuss the oil production freeze saying it was unwilling to "give up its historic production quota."

The participants of the talks failed to reach an agreement on oil production cap. After 12 hours of talks the parties said they needed some more time for consideration.

Then, Russian Energy Minister Alexander Novak said that the agreement was not reached because several counties had changed their positions. Saudi Arabia was among the members of OPEC that put forward additional requirements to address the "freeze" of oil production. Saudi Arabia said that it would sign the agreement only if Iran also signed it, although it had not voiced such conditions earlier.

In August, oil production of OPEC countries increased by 120,000 barrels of oil per day to a record 33.69 million barrels amid the growth of production in Iran, Iraq and Kuwait, according to Bloomberg survey. In particular, Iran increased its oil production by 60,000 barrels per day to 3.62 million tonnes in attempt to achieve the output of 4-4.2 million barrels that it had before the sanctions.

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