Crude futures jumped on Wednesday as hopes for an agreement among exporters to freeze output undertelevision reported on Wednesday, with plans to export 2.25 million bpd of those supplies.
That would be up from a little over 1 million bpd under the sanctions and only slightly below pre-sanctions peaks of 2.5 million bpd.
With Iran’s exports rising and other producers pledging to freeze production near record-high levels, an agreement would do little to address a global supply overhang that sees at least a million barrels of crude produced every day in excess of demand.
The ample supplies were reflected in physical markets, with Abu Dhabi cutting its March retroactive official selling price (OSP) premium over benchmark Dubai crudes by 64 cents to $3.06 per barrel.
This followed top exporter Saudi Arabia lowering its May Arab Light crude
