Here we go with the deals and counter deals
Saudi Arabia has proposed a deal to Iran to reduce output if Iran agrees to freeze production at current levels of 3.6mbpd
The deal has been put to Iran ahead of the Algeria meeting
Reuters cite sources familiar with discussions.
Unsurprisingly Brent crude has shot up and is up around a buck on the news.
If true this is potentially a big deal as Iran and the Saudi's have been competing with each other for market share. Iran had wanted to get production up to 4mbpd after the sanctions were lifted.
As is ever the case with these things, particularly with the oil mob, we should wait for official confirmation before diving right into it.
Irrespective of whether a deal is done or not, output is still likely to be set at levels way above demand and so it doesn't really alter the dynamics of the market anyway.
