The world's top oil producers Saudi Arabia and Russia agreed on 16 February to freeze oil output at January levels in a bid to stabilize an oversupplied market.>>>
“The most difficult for that agreement would be Iran and Iraq,” says oil analyst Richard Mallinson of Energy Aspects Limited.
“Iran is one of the few OPEC countries not currently producing at its full capacity. As recently as January it received relief from western sanctions because of the nuclear deal, and so it is now hoping to increase its production and exports,” he says.
“But if it were to agree to a freeze in production, it would lose out. It would not able to increase its production, while Saudi Arabia, Russia, and other countries that are already at higher levels would maintain. So they wouldn't actually remove any oil from the market, it would only really be Iran that would be giving up.”
Iran may not agree, but is it open to negotiations?
“Iran will negotiate, because having oil prices this low is not good for anyone, except if you are a country that is importing oil,”>>>