DUBAI: Old disputes between Saudi Arabia and rival Iran resurfaced at a meeting of Opec experts last week, with Riyadh threatening to raise oil output steeply to bring prices down if Tehran refuses to limit its supply, Opec sources say.

Clashes between the two Organisation of the Petroleum Exporting Countries (Opec) heavyweights, which are fighting proxy wars in Syria and Yemen, have become frequent in recent years.

Tensions subsided, however, in recent months after Saudi Arabia agreed to support a global oil supply limiting pact, thus raising the prospect that Opec would take steps to boost oil prices.

But a meeting of Opec experts last week, designed to work out details of cuts for the next Opec ministerial gathering on Nov 30, saw Saudis and Iranian clashing again, according to four Opec sources who were present at the meeting and spoke to Reuters on condition of anonymity.

“The Saudis have threatened to raise their production to 11 million barrels per day and even 12m bpd, bringing oil prices down, and to withdraw from the meeting,” one Opec source who attended the meeting told Reuters.

The Opec headquarters declined to comment on discussions during the closed-door meetings last week. Saudi and Iranian Opec delegates also declined official comments.

Saudi Arabia has increased output since 2014 to record highs of around 10.5m-10.7m barrels per day and adding extra supply would only worsen the global glut, which has already seen prices more than halving from $115 a barrel since mid 2014.

The Saudi threat followed objections by Iran, which said it was unwilling to freeze its output, the same Opec sources said. Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions.

Published in Dawn November 5th, 2016