Iran has demanded an exemption from oil production freeze in order to boost its exports.
Middle East Online
RIYADH - Top oil exporter Saudi Arabia
will only freeze output if other key producers, including Iran, take a
similar measure, its deputy crown prince told Bloomberg News in an
interview published Friday.
"If all countries agree to
freeze production, we're ready," Mohammed bin Salman said. "If there is
anyone that decides to raise their production, then we will not reject
any opportunity that knocks on our door."
His remarks
come ahead of a meeting of major oil producers led by Russia and Saudi
Arabia set to take place in Doha on April 17 to discuss measures to
stabilise prices, including a proposal not to pump out oil above a
certain level.
Iran indicated it was "ready to
participate" in the meeting demanded an exemption from the freeze in
order to boost its exports, according to Russian Energy Minister
Alexander Novak.
Oil prices are being hit in part owing
to the return of Iranian crude to markets after crippling economic
sanctions on Tehran were lifted following last year's nuclear deal
between Iran and world powers.
King Salman's powerful
son who heads Saudi Arabia's main economic coordinating council, told
Bloomberg that "without a doubt", Iran has to freeze its output.
"If
all countries including Iran, Russia, Venezuela, OPEC countries and all
main producers decide to freeze production, we will be among them," he
said.
Riyadh severed diplomatic ties with Tehran this
year after demonstrators stormed the kingdom's missions in Iran
following Saudi Arabia's execution of a Shiite cleric.
Both regional heavyweights back rival groups in several conflicts rocking the Middle East.
The
upcoming meeting in Doha is a follow-up to talks in February between
Qatar, Russia, Saudi Arabia and Venezuela in which they first mooted the
output freeze.
Prices have collapsed from levels above
$100 seen in mid-2014 largely owing to supply outrunning demand as
global economies, particularly China, suffer a growth slowdown.
The Saudi deputy crown prince's remarks drove down oil prices on Friday.
Around 1130 GMT, US benchmark West Texas Intermediate for delivery in May slid 89 cents to $37.45 a barrel.
Brent North Sea crude for June delivery was down 82 cents at $39.51 a barrel compared with Thursday's close.
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