Oil Drops After Iran Slams OPEC Production 'Freeze' Proposal As "Ridiculous"

Tyler Durden's picture

Despite OPEC's El-Badri proclaiming that Iran and iraq "didn't refuse to join the production freeze," oil prices are tumbling this morning on comments from Iran's oil minister that OPEC's call for a production freeze is "ridiculous."

Proposal by Saudi Arabia, Russia, Venezuela, Qatar for oil producers to freeze output puts “unrealistic demands” on Iran, Oil Minister Bijan Namdar Zanganeh says, according to ministry’s news agency Shana.

 

*IRAN CALLS SAUDI-RUSSIAN OUTPUT FREEZE PLAN `RIDICULOUS': SHANA

As Reuters adds, "a proposal by global oil producers to coordinate a production freeze is "laughable" because it does not allow Iran to regain the market share it lost during sanctions, Iran's oil minister was quoted as saying on Tuesday. "Some of our neighbours have increased their production to 10 million barrels a day in recent years and export this amount, and now they have the nerve to say we should all freeze our production together," Bijan Zanganeh was quoted as saying by the Iranian student news agency ISNA.

"So they should freeze their production at 10 million barrels and we should freeze ours at 1 million barrels -- this is a laughable proposal," he said."

Which is precisely as we reported before.

And the result:

 

So Iran's out?

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NoDebt's picture

I've been taking the bus to work lately.  No, not public transportation.  I mean I bought an old bus and that's what I drive to work every day now.

mandalou's picture

Well you can compete with public transportation. Wait, better not. You may need a fucking permit.

NoDebt's picture

What?  I'm not allowed to drive around myself and 60 of my best friends if I want to?

mandalou's picture

No, you need a permit then a driving course on carrying cargo.

overmedicatedundersexed's picture

no news otta syria and turkey..don't give a shit about production freeze..one morning we will wake up to" russia takes out turkey airbase, Iran hits gulf states oil terminal"..what price oil then?

mandalou's picture

depends if the toggle switch is set to :

good news is bad news algo

good news is good news algo

bad news is bad news algo

Goldman sachs algo of fuckery

walküre's picture

Who cares? We have a glut and the migrant invasion is arriving on foot. The more war they have down there, the more will come and clog up that little bit of European economic recovery that was supposedly happening.

I'm not kidding you, Germans are so fed-up they are not planing, building or let alone investing into the future. What future? The future of millions of camel fucking niggers turning every German city into a bazaar or prayer meeting?

thesonandheir's picture

'Turn those goddamm algos off NOW!'

chockl's picture

Yes you are a traveler not a driver.

Guitarbill's picture

"ridiculous" as in freezing at all time high outouts or
"ridiculous" as in "we need more outout"

Seems a little dubious.

BullyBearish's picture

More BEAR FOOD today:

Following Dimon, CFO Marianne Lake says JPMorgan (NYSE:JPM) - in a stress scenario where oil stays at $25 for 18 months - will need to take another $1.5B in reserves. "It's not our expectation," she adds, but the bank wants to give an idea of what could happen if things in the oil patch stay like they are.

 

For them to present this with a timeframe suspiciously similar to the length of the 2007/8 correction starts to ring the  dinner bell...

Davilis's picture

Iran is not at all time high output. They are just getting back online after the sanctions which is why any talk of freezing or cutting is ridiculous to them.

The writing is there for all to see - Saudis and Russians agree to freeze at all time highs, Iran is coming online with increased output, and the US has begun to export again. Everyone else is pumping as fast as they can to maintain cashflow. When oil hits $20 everyone will realize how BAD it was that there were freezes at all time highs since that just ensures the markets will be flooded.

Guitarbill's picture

I never said Iran was at all time high outputs, for OPEC to freeze production at "all time high output" puts Iran in a box. Will they output less or more because of this freeze? The response is uncertain and does not answer any questions as to how much more oil is coming onto the market. Uncertainty will likely lead to lower oil and stockmarket prices, but again it's uncertain, thats all im saying.

roadhazard's picture

I'm shocked. I love the BS excitement of watching words make oil go up and down a couple of bucks. I <3 cheap gas.

mandalou's picture

For someone who is not cool, what is this less than 3 shit everybody is posting.

NoDebt's picture

Tilt your head to the right and look at it sideways.

mandalou's picture

lol its a penis. or a heart. heart makes sense.

Chump's picture

A penis?  Really?  Yours is pointy?

8======D~~~~~~

mandalou's picture

i Have a patriot penis

 

Bro of the Sorrowful Figure's picture

the iranians are really getting me to come around. been standing up to the zionazis for decades, boots on the ground in syria, selling oil for euros, bilateral trade agreements all over, really throwing a stick in the spokes of the warmongers' plans, playing by western rules with the nuclear agreement. cant believe im pulling for iran and russia but they look like the only sane countries left on the planet. 

venturen's picture

ya ignore the stoning women, beheading, supports muslims murders across the world... Try moving to Iran and tell us how it is. Though I have to say I agree that Russia is appearing more reasonable than Obama 

101 years and counting's picture

you funny.  the US is all holy and everyone else is the bad guy.

MSimon's picture

They are ALL bad guys. Some are worse.

 

Islam is not YOUR friend.

roadhazard's picture

On ZH it's just exactly the opposite of what you said.

Wild E Coyote's picture

i think you got the country wrong. have you been to Iran?

Bro of the Sorrowful Figure's picture

i live in china and have worked with 5 or so chinese women who earlier in their careers were doing infrastructure projects in iran for years. they only had good things to say.anecdotal yes, but:

the more i learn about western history and the more i read/listen to the press & people in other countries, the more i think that we are the real tyrants. 

101 years and counting's picture

so, the algos need an actual quote stating the obvious to sell oil?  those 19 year old PhD's must be losing their touch at programming the hidden meanings in all headlines....

venturen's picture

Venezuela...LOL that is funny...their production has been FALLING since 1998 and they have the largest reserves in the world. Something about Bernie Sanders Socialism or something! 

NoWayJose's picture

Venezuela could have succeeded with oil funded socialism - but kept nationalizing, taxing, and discouraging oil companies from increasing production.

yogibear's picture

It's $20 or below oil folks. Inventories are filling up.

NoWayJose's picture

Almost like yesterday's rally in oil was manipulation...