Iran's Rouhani says OPEC cooperation key to stabilising oil

Iran's President Hassan Rouhani said on Thursday that members of the Organization of the Petroleum Exporting Countries (OPEC) should work together to secure implementation of a deal reached last month aimed at stabilizing the oil market, Iran's state TV reported.

Oil rebounded from the week's lows and hovered above USD 50 a barrel on Thursday ahead of a meeting on Saturday in Vienna between OPEC and non-OPEC producers that may result in an agreement to cut crude output further.

Rouhani said Tehran backed measures aimed at stabilising the market that could led to an oil price increase.

"Close cooperation among OPEC and non-OPEC countries is key to stabilizing the oil prices and their increase,” Rouhani said in a telephone conversation with Venezuela’s President Nicolas Maduro, according to Iran's state TV.

"It will pave the way for implementation of deals reached during meetings in Algiers and Vienna this year."

OPEC agreed last month in Vienna to reduce output by around 1.2 million bpd from January 2017, a move that bolstered crude prices.

Iran was exempted from the cut, being allowed to boost production slightly from its October level - a victory for Tehran, which has long argued it needs to regain market share lost under Western sanctions.

The sanctions were lifted in January under a nuclear deal reached in 2015 with six major powers aimed at curbing the country's nuclear programme.

Oil producers in Vienna will see whether those outside OPEC will cut production to reduce a global supply glut that has pressured prices for more than two years.

Non-OPEC countries are expected to contribute a reduction of 600,000 bpd as part of the wider agreement. Non-OPEC Russia has signalled it was ready to cut production by 300,000 bpd.

Venezuela's oil minister said on Wednesday OPEC was aiming for a moderate but not too high oil price.

"Oil brokers should not be allowed by OPEC to determine the crude prices ... Iran and Venezuela's cooperation can help bringing crude prices to a real and fair level," Maduro said, according to state TV.