Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Opinion / Iran’s oil leverage
BackBack

Iran’s oil leverage

Opec countries would like to see Russia-Saudi Arabia partnership inch towards a production freeze agreement, but Iran's interests come in the way

Premium

Russia and Saudi Arabia’s agreeing on the sidelines of the G-20 summit to cooperate in stabilizing the oil market predictably led to a spike in oil prices. But the rapidity with which they pared gains shows how long the road from cooperation to concrete action is.

As of now, the “strategic energy partnership" between the two oil giants is in the nature of a talk shop. True, both have reason to cooperate, with the low oil prices of the past two years hitting their economies. Other Organization of Petroleum Exporting Countries members have taken even more of a shellacking. They would certainly like to see this partnership inch towards a production freeze agreement.

But Iran stands in the way as it has since international sanctions were lifted in January. It has made it clear that it will consider a freeze only once it has regained its former market share. There’s the rub. Will Saudi Arabia be willing to cede ground to its rival? Unlikely.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Published: 06 Sep 2016, 12:42 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App