Saudi Offers Reduced Oil Production for OPEC Deal if Iran Freezes Output

Three sources familiar with the discussion said that Saudi Arabia has offered oil cut for OPEC deal if Iran freezes output.

The offer was presented by Tehran and it is yet to be accepted nor declined.

Sources also said “Riyadh is ready to cut output to levels seen early this year in exchange for Iran freezing production at the current level, which is 3.6 million barrels per day”.

“They (the Saudis) are ready for a cut but Iran has to agree to freeze,” one source said.

However, the amount that Riyadh would cut (if Iran agreed to freeze at 3.6 million bpd) was not mentioned.

Production in Riyadh has spiked due to summer demand with a record of 10.67 million bpd. Also Saudi has 10.2 million bpd (January to May).

Saudi is currently the largest producer in the Organisation of the Petroleum Exporting Countries.

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