Algeria makes a proposal to cut production, according to a document cited by Bloomberg
- The proposal would mean a 442K bpd cut for Saudi Arabia compared to August
- The proposal would include a 3.7mbpd cap for Iran and 10.1 bpd for Saudi Arabia
- Iran would be able to produce additional 52K bpd from current levels
- Iraq production would be cut 135K bpd
- UAE would lose 155K bpd
- Nigeria and Libya would be exempt
Oil is back up to $45.20 after falling as low as $44.35. It rose around 35-cents on this set of headlines.
My thinking is that this proposal has already been rejected by Iran. They've consistently said they will pump 4 mbpd so I struggle to see this idea as having a chance.
