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Saudi Arabia Reportedly Offers to Cut Oil If Iran Freezes Output

September 23, 2016

A general view shows a new plant inaugurA general view shows a new plant inaugur
A plant in Haradh, southwest of the eastern Saudi oil city of Dhahran.- AFP/Getty Images

Saudi Arabia has offered to lower its own oil production if rival Iran agrees to cap its output this year, in a major compromise ahead of talks in Algeria next week, three sources familiar with the discussions told Reuters.

The offer, which has yet to be accepted or rejected by Tehran, was made this month, the sources told Reuters on condition of anonymity.

See also: Iran Sets Out Terms to Cooperate with OPEC and Help Stabilize Oil

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Riyadh is ready to cut output to lower levels seen early this year in exchange for Iran freezing production at the current level, which is 3.6 million barrels per day, the sources said.

“They (the Saudis) are ready for a cut but Iran has to agree to freeze,” one source said.