Iran not ready to freeze oil prices

Oil price is rallying in the opening day of the meeting of OPEC in Algeria; Brent and WTI mark both fell around 1.50 percent, after morning's declaration, made by Iran's oil minister, Bijan Namdar Zanganeh, who seems to have erased the little chance of a deal today for a freeze or cut production of crude oil. 

"It's not in our agenda to reach an agreement in two days. We need time for more consultation," he told reporters on the sidelines of an energy conference.

According to several press agencies reported, the Iranian minister said to go to the meeting to discuss with the other members, informally and "Very soon this production will be operated and we will increase our production" to 4 million barrels per day (bpd), he said, from the current level estimated at between 3.6 million and 3.8 million bpd, he added.

Last month, the production amounted to 3.6 million barrels daily, confirming the upward trend in 2016 due to the lifting of sanctions, which were eased in January 2016. The Minister, however, has opened up the possibility of an agreement in the formal OPEC meeting in Vienna, scheduled on November 30.

“The market is expecting that they won’t reach an agreement, so if they don’t…there could be a price setback but I don’t expect it to be a major collapse,” Olivier Jakob, managing director of Swiss-based consultancy Petromatrix, told WSJ.