Journalist in Iran writes on what Iran proposed
Reza Zandi, the editor of Energy in Seda magazine, reports that Iran proposed a system of country quotas in order to support the oil market.
Under the proposed system, Iran would have been allocated 12.7% of OPEC output, or 4.173 million barrels per day, he said.
The quota levels would require all other OPEC members to trim production to the lowest it's been in the past 12 months and those levels would be in place for one year. In total, they would work together with non-OPEC countries to cut production by 1 million barrels per day.
Zandi reports the idea was rejected by Saudi Arabia but, if it's true, it may show that the sides aren't extremely far apart. We also know that measurements of oil production have been a key sticking point because of endless cheating in the past.
