Crude oil prices, after plunging to a three-month low, snapped back on reports of a new diplomatic push by OPEC to finalize a deal to cut production. The report by Bloomberg said that Qatar, Algeria and Venezuela is leading the push to overcome the divide between Saudi Arabia, Iraq and Iran.
While the Energy Information Admintation reports another drop in crude stocks, doubts about a OPEC/non-OPEC accord was met with skepticism. Traders assumed this would be the end of the OPEC/non-OPEC deal; but not so fast.
Crude prices jumped in reaction to the latest weekly U.S. crude stockpiles data but then quickly went into reverse gear, before bounce back once again. Traders were in no mood to take any chances ahead of the conclusion of talks between the OPEC and non-OPEC members in Algeria, especially given how headline-driven prices have become. At the time of this writing, Brent was trading at $46.65 and WTI at $45.20 a barrel, both holding onto small gains for the day.
The Saudis are making huge concessions to achieve a freeze on global oil output and the world waits for Iran’s decision. The Saudis have offered to cut their own oil production and offered to allow Iran, Libya and Nigeria to increase their oil production to “sensible” levels. While it is likely that Libya and Nigeria would agree to be allowed to increase their production to recent highs, it is unclear whether Iran will go along.
Saudi Arabia offering to cut production in a sign of good faith after they lowered expectations for a deal in Algiers this week. Saudi Arabia says they are ready for any outcome and there is talk that if OPEC can come to an agreement, they could still formalize this meeting. OPEC negotiations are heating up as the cartel members look to solidify a deal to restrain oil output.
Ahead of next week’s talks in Algeria, Reuters reported this morning that Saudi Arabia is apparently willing to reduce its oil output for as long as Iran agrees to freeze its production at current levels. Reuters cited three unnamed sources behind this story, but so far there has been no official confirmation or denial.
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, four sources familiar with the discussions told Reuters.
Saudi Arabia is making an incredible offer to try to close the deal on a production freeze at the meeting in Algiers. The word on the street is that Saudi Arabia is offering to cut its oil production if Iran agrees to freeze theirs.

Do you remember on Friday when traders were saying that they were selling crude oil because of the impending resumption of Li