Oil jumps despite dashed hopes on output cut – CNBC

11 months ago Comments Off on Oil jumps despite dashed hopes on output cut – CNBC

Iran, which was not present on Tuesday’s meeting, planned to increase output by at least 500,000 barrels a day this year following the lifting of Western sanctions last month. Iran quickly said it wouldn’t participate in any supply-freeze deal, but Reuters cited sources saying that that the country could be offered special terms on production levels if it took part in the deal.

Market watchers received news of the deal with skepticism because not only do Iran and Iraq need to agree to the freeze, but even if the deal went ahead, it would be unlikely to solve the problem of a supply glut.

Russia pumped a post-Soviet Union record high of 10.88 million barrels a day in January, while Saudi Arabia’s output was near its record high around 10.2 million barrels a day, senior commodities editor at The Economist Intelligence Unit (EIU), Sebastien Marlier, said.

Questions were also raised over whether Russia and indeed Saudi-dominated OPEC itself would be disciplined enough to respect the agreement.

Oil jumps despite dashed hopes on output cut – CNBC}