Saudi Arabia offers oil cut for OPEC deal if Iran freezes output

Baku. 23 September. REPORT.AZ/ Saudi Arabia has offered to reduce oil production if rival Iran agrees to cap its own output this year, in a major compromise ahead of talks in Algeria next week. 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 (bpd), Report informs referring to the Reuters.

The offer, which has yet to be accepted or rejected by Tehran, was made this month, the sources told Reuters on condition of anonymity.

Riyadh's production has spiked since June due to summer demand, reaching a record high in July of 10.67 million bpd and edging down to 10.63 million bpd in August. From January to May, Saudi Arabia produced around 10.2 million bpd.

OPEC members will meet on the sidelines of the International Energy Forum, which groups producers and consumers, in Algeria from September 26-28. 

After Saudi Arabia's proposal news, Brent crude oil on world markets up from 47 USD to 48 USD per barrel. 

Analytical Group of Report News Agency predicts, in the near future the price will reach 50 USD/barrel.