Mr. Zanganeh told reporters on Saturday that Iran and Algeria had been working to bring about a sort of condition to balance oil production. He was meeting with country’s Energy and Mines Minister Mr. Nouredine Bouterfa in Tehran.
“Algeria has proposed a package to Iran according to which OPEC member states would fashion a sort of agreement to reduce oil production which had been agreed to remain in 32.5 million barrels per day during Algiers’ summit earlier in October,” he told reporters. “Algerian proposal suggests a quota system for each member states, a plan Mr. Bouterfa will also present the 171st OPEC Session in Viennna, November 30.”
Zanganeh predicted that OPEC would reach a relatively sustainable accord in managing markets and production of oil; he believed the global economic trends necessitated such a decision and scheme; “Algiers’ session has been welcomed widely by member states; the exceptions to quota system which affects Iran, Libya, and Nigeria will also be on place in the upcoming session,” said the minister.
Bouterfa also shared Zanganeh’s view that oil prices would touch a target $50-55 per barrel well in 2017 should OPEC hits a deal; “if we fail to keep the deal alive, prices will plummet well below $50 per barrel,” he added. “Algeria will present the session a decline of 1.1 million barrels in OPEC basket, which will be examined by Iran for Vienna session; non-OPEC oil producers would have their own reduction plan of 600,000 barrels per day; the measure would largely save the oil market from further losses,” he expressed hope.
Asked about his optimism of Vienna session, Bouterfa was buoyant about the November 30 session success he predicted to be hit by agreement on quota system.
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