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Reuters reported that oil prices jumped 7 percent Wednesday after Iran said it supports Russia and Saudi Arabia’s move to stem the oil market glut by freezing production.
Reuters reported that oil prices jumped 7 percent Wednesday after Iran said it supports Russia and Saudi Arabia’s move to stem the oil market glut by freezing production.
As quoted in the market news:
Iranian Oil Minister Bijan Zanganeh met counterparts from Venezuela, Iraq and Qatar in Tehran for over two hours on Wednesday, saying the proposed production “ceiling” should be the first step towards stabilising the market.
Zanganeh, quoted by Tehran’s Shana news agency, did not explicitly say that Iran will keep its own output at January’s levels, in line with the proposal that major producers, including Russia and Saudi Arabia, restrict output.
But the tacit endorsement from Iran helped push global crude benchmark Brent up more than $2/bl. Tehran has been the main obstacle to the first joint Organisation of the Petroleum Exporting Countries (OPEC) and non-OPEC deal in 15 years, after its pledge to recapture market share lost during years of sanctions.
Brent was up $2.25, or 7%, at $34.43/bl by 1:25 pm EST.