From The Wall Street Journal:
Several OPEC members want to revive the idea of setting new limits on
oil production this fall as Iran regains much of the energy-industry
might it lost during the years of Western sanctions, according to people
familiar with the matter.
The nations—which include Venezuela,
Ecuador and Kuwait—want to take another stab at cooperation between the
14-nation oil cartel, the Organization of the Petroleum Exporting
Countries, and nonmembers like Russia.
A similar initiative died back in April during talks in Doha, Qatar, when Saudi Arabia backed out over Iran’s refusal to join in
a so-called production freeze until it had reached pre-sanctions levels
of oil production. Under the freeze, countries would have agreed to limit their production to certain levels in a bid to raise oil prices by constricting the amount of crude on the market.
Now,
Iran’s production has crept back up to 3.6 million barrels a day, about
180,000 barrels a day above its levels in April and almost 600,000
barrels a day higher since world powers lifted economic restrictions on the country over its nuclear program
in January. That brings it within reach of the 4 million to 4.2 million
barrels a day that Iranian officials said they would require before
agreeing to a freeze.
The next meeting where some type of freeze could be announced: September 26, 2016. By then, Iran will be even closer to 4 million bopd.
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