The Organization of Petroleum Exporting Countries, OPEC, and non-OPEC producing countries will hold a meeting in Doha, Qatar on April 17 as part of efforts to freeze crude oil output and prop up prices.
The renewed cooperation between OPEC and non-OPEC members had led to a rise in the price of oil above $40 per barrel but that was still a fraction of the $115 per barrel of 20 months ago.
However, Iran’s latest position that it would only join the discussions for cooperation after its output has hit 4 million barrels per day (mbpd), had led the price to slump below $40 per barrel before it rose on Wednesday.
Iran’s oil exports are due to reach 2mbpd in the Iranian month that ends on March 19, up from 1.75 million in December 2015.
Iran’s position also made the scheduled meeting of OPEC members with Russia on March 20 to look unlikely.
However, Wednesday’s announcement by Qatari Oil Minister, Mohammed Bin Saleh Al-Sada, who is also the President of OPEC that the members of the cartel and non- member producers would meet in Doha on April 17 will likely renew confidence in the oil market.
“This comes as a follow-up to the meeting that was held last month in Doha between Qatar, Saudi Arabia, Russia and Venezuela at which they proposed an accord to freeze oil output at January 2016 levels and called on other producers to do so,” Bin Saleh Al-Sada was quoted by Reuters as saying in a statement.
The statement said that to date, around 15 OPEC and non-OPEC producers, accounting for about 73 per cent of global oil output, are supporting this initiative.