Saudi Arabia and Iranian Ministers To Decide Upon Cutting Oil Production

Published By : 26 Nov 2014 | Published By : QYRESEARCH

In a meeting between Oil ministers of Iran and Saudi Arabia scheduled to take place this week in Vienna, it is expected that Iranian ministers will try to convince ministers of Saudi Arabia to cut oil production.  The news was reported by Iran’s Mehr news agency on Sunday, citing a TV interview with the country’s oil minister.

The decision to cut production of oil is expected to be taken to prop up oil prices. Since June, Brent crude oil has lost nearly 30% of its value to nearly $80 per barrel due to increased supplies and weak demands. 

Mehr reported that the Iranian oil minister will meet Saudi Arabia’s minister in Vienna to convince oil leading manufacturers for cutting on the supply of oil production and supply. 

However, an agreement about OPEC output cut in this week’s meeting looks uncertain. Because, Saudi Arabia, the world’s biggest exporter of oil has yet not stated if it supports oil cut as such. In fact, a difficult meeting is being expected by OPEC delegates and analysts’ opinions about the outcome of the meeting.

Iran’s oil Minister Bijan Zanganeh has stated that he will meet Saudi Arabia’s oil Minister Ali al-Naimi in Vienna to speak about market shares as Tehran aims at boosting its oil exports if sanctions are closed.  

Official sources of Iran state that a sharp reduction in oil prices this year has resulted due to some deliberate moves by some oil exporters that kept high oil production in attempts to undermine Tehran’s economic conditions.
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