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Iran signals it’s willing to cap oil output until end of the year

TEHRAN—Iran signaled its readiness to cap its oil output until the end of the year in order to extend an OPEC-led agreement to cut production, backing Saudi Arabia’s push to raise prices.

Despite wanting to boost output, Petroleum Minister Bijan Zanganeh said Saturday that Iran has kept its oil production at 3.8 million barrels a day under an agreement brokered last year by the Organization of the Petroleum Exporting Countries and joined by some critical non-OPEC members including Russia.

Saudi Arabia has told OPEC officials that it wants to extend the cartel’s agreement to cut crude-oil production

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  for another six months when the group meets on May 25 in Vienna. OPEC member Iran, which was allowed to limit rather than reduce its output under the deal, was seen as a potential obstacle.

There have been positive signals that the oil exporters would support the Saudi proposal, Zanganeh said.

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