Oil Falls as Iranian Minister Calls Freeze Proposal `Ridiculous'
- Saudi Arabia's Naimi says kingdom won't reduce production
- U.S. supplies forecast to expand 3.25 million barrels: survey
Is A Saudi-Russia Oil-Output Freeze ‘Ridiculous’?
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Oil tumbled after the Iranian Oil Minister said that an agreement by Saudi Arabia and Russia last week for oil producers to freeze output was "ridiculous."
Crude fell 4.6 percent in New York. The proposal to cap output at January levels puts “unrealistic demands” on Iran, Bijan Namdar Zanganeh said Tuesday, according to the ministry’s news agency Shana. Saudi Arabia and Russia, the world’s two biggest crude producers, agreed to the freeze on condition other major producers, notably Iran and Iraq, follow suit. Saudi Arabia isn’t cutting output, the kingdom’s oil minister, Ali al-Naimi, said at the IHS CERAWeek oil conference in Houston.