Major oil producers are talking up the prospect of a production freeze … again.
The latest positive comments came from Iran on Tuesday. Oil minister Bijan Zanganeh said he “supports any potential measures aimed at restoring stability,” according to state-run Press TV.
Targeting a price of $55 per barrel was reasonable, Zanganeh was quoted as saying. It would “make oil production cost effective and beneficial for OPEC members,” while keeping pressure on the group’s rivals.
Boosting crude prices to that level would likely require major producers to freeze production, a goal that has eluded them in the wake of an epic price collapse that began in 2014.
An informal meeting between OPEC and other producing nations is set for the last week of September in Algeria. OPEC Secretary General Mohammed Barkindo, who has advocated a freeze, met Zanganeh for talks on Tuesday.