On Monday, Russia and Saudi Arabia came to an agreement on joint measures and coordination with other crude producers to stabilize the global oil market.
At the same time, he abandoned his previous statement that Iran would not freeze output until the Iranian oil industry reached the pre-sanctions production level (4 million barrels a day).
By sending such controversial signals, Iran wants to have scope for maneuvers because the agreement does not comply with Tehran’s interests, Charles McConnell, Executive Director Energy and Environment Initiative at Rice University, said.
On the other hand, in the future, an alliance between Russia and Saudi Arabia could become more powerful than OPEC because Moscow and Riyadh are the world’s two biggest oil producers, Michael Moore, Vice President at FearnOil and Executive Director of the NACCSA, said.
By expressing formal and non-binding support, Iran is using a "normal political tactic," McConnell concluded.
