Bahrain Mirror: The chances to reach a deal between oil countries to freeze the oil outputs at the Algeria meeting on Wednesday (September 28, 2016) became weak, especially after the significant disagreements between Iran and Saudi Arabia.

The members of the Organization for Petroleum Exporting Countries (OPEC) met informally on Wednesday in an attempt to reach an agreement that allows to increase prices under collapse since mid-2014. This came on the sidelines on an international energy conference. 

As expected, major disagreement were present between Iran and Saudi Arabia; the biggest powers of the Middle East, which presents an obstacle before the said deal.

Iranian Oil Minister Bijan Zanganeh said on Tuesday that Iran is not ready to agree to an oil output freeze in Algiers.

On this level, he said, "It's not in our agenda to reach an agreement in two days."

"We need time for more consultation," the Iranian minister added, yet stated the possibility of reaching an agreement during the OPEC Vienna meeting on November 30.

Iran seeks to restore its previous level of production, before the international sanctions imposed on it because of its nuclear program.

Moreover, Zanganeh asserted that his country is not ready to freeze the output in its current levels, stressing that the goal is for the output to reach 4 million barrel per day, while it currently stands at 3.6 to 3.8 million, according to sources.

Oil prices lost more than half their value since mid-2014. This is due to the excess in supply because of the excessive US shale oil, and the OPEC strategy to cut its production in the markets to keep its shares.

Many countries that rely on their oil revenue call for the output freeze. However, small producing countries oppose that, like Iran, and even Saudi Arabia, which calls for the limitation of output.

The Saudi Oil Minister, Khaled al-Faleh, told his Iranian counterpart that "one country cannot affect the market." He also gave the impression that his country does not need to reach an agreement.

"I remain optimistic that the market will take a right path", he said, stating that the oil market will restore its balance without the need for interference.

The Secretary General of the OPEC, Mohammad Barkindo, tried to ease the situation, and clarified that what Iran announced, as did other OPEC members, is an integral part of these negotiations.

The financial markets were not surprised with these stances, since industry analysts have low expectations of an agreement to reach consensus.

There was a decrease in oil prices per barrel: in London there was a decrease in 1.39%, while in the New York Electronic Exchange market, the "Late Sweet Crude" decreased by 1.48%.

Economic expert Neil Wilson said that "the hope to reach an oil output freeze in Algeria this week vaporized after Saudi Arabia joined Iran to confirmed that this meetings is only for discussion."

For its part, Russia expressed its readiness to exert efforts to decrease its output, which currently reached its maximum level, according to a source close to the Algerian government

However, Russian Energy Minister, Alexander Novak, clarified that his country will adopt its position after the informal meeting.

Meanwhile, Iraq's Oil Minister Jabbar al-Luaibi, also attending the meetings in Algiers, said he expected "positive results" from the talks aimed at taking steps to increase prices.

"We support all efforts to stabilize prices," he concluded.

Arabic Version