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جمشید آموزگار، نخست‌وزیر پیشین ایران، در سن ۹۳ سالگی درگذشت.

رضا پهلوی در حساب فیسبوک خود ضمن اعلام این خبر نوشته است: "خدمات وی به کشورمان ایران قابل ستایش است."

در سال ۱۳۵۵ آقای آموزگار به عنوان دومین دبیرکل "حزب رستاخیز ایران‌" (حزبی که توسط محمد رضا پهلوی به عنوان یگانه حزب ایران تاسیس شده بود) و مشاور نخست وزیر به کنگره حزب معرفی گردید.

وی سپس در شهریور ماه ۱۳۵۶ و تقریبا همزمان با اوج گرفتن اعتراضات علیه رژیم پهلوی به عنوان نخست وزیر ایران سکان هدایت دولت را برعهده گرفت.

به اعتقاد برخی از ناظران، شاه با انتخاب آقای آموزگار در صدد بر آمده بود تا خود، با مشارکت بخشیدن به مخالفانش، فرصت بحران زایی در ایران را از منتقدانش بگیرد.

اما عملا در دوران نخست وزیری آموزگار مخالفت‌ها در کشور بالا گرفت و انتشار مقاله‌ای در ۱۷ دی ماه ۱۳۵۶ علیه آیت الله خمینی از سوی دولت به اعتراض خیابانی طرفداران او انجامید. بسیاری از شهرهای ایران را موجی از اعتراضات در قالب راهپیمایی در برگرفت.

در پی این تحولات و افزایش اعتراضات، وی در نهایت از مقام نخست‌وزیری و دبیرکلی حزب رستاخیز استعفا کرد.

هفت روز پس از استعفای آقای آموزگار، محمدرضا پهلوی، حزب رستاخیز را منحل کرد. آقای آموزگار در آذر ماه ۱۳۵۷ ایران را به مقصد آمریکا ترک کرد.

پس از آن فعالیت‌های آقای آموزگار بر اقتصاد جهانی و صندوق بین المللی پول متمرکز بود.

پیشینه

آقای آموزگار متولد چهارم تیر ماه ۱۳۰۲ استهبان فارس بود. پدرش حبیب‌الله خان آموزگار از قضات وزارت عدلیه رضا شاه بود.

جمشید آموزگار، دانش آموخته حقوق و اقتصاد در دانشگاه تهران و فارغ التحصیل مقطع دکترای مهندسی هیدرولیک از دانشگاه واشنگتن بود.

وی عضو مجلس مؤسسان و دوره ‌های دوم و سوم مجلس سنا بود و در کابینه حسین علاء وزارت فرهنگ را بر عهده داشت.

وی دوران ابتدایی و متوسطه را در تهران گذراند و تحصیلات دانشگاهی اش با جنگ دوم جهانی مقارن شد.

او تحصیل در رشته های حقوق و اقتصاد دانشگاه تهران را رها کرد و به آمریکا رفت. در دانشگاه کرنل لیسانس مهندسی راه و ساختمان را گرفت. در رشته مهندسی هیدرولیک در دانشگاه واشنگتن ادامه تحصیل داد و با اخذ مدرک دکترا از آنجا فارغ التحصیل شد.

در سال ۱۳۲۸ فعالیت های اجرایی خود را با سمت کارشناسی در سازمان ملل آغاز کرد.

سال ۱۳۳۰ به ایران بازگشت و دو سال بعد، معاون مهندسی وزارت بهداشت شد و پس از آن به مدت بیش از هفده سال در کابینه های دکتر منوچهر اقبال، حسنعلی منصور و هویدا فعالیت داشت.

او سابقه وزارت بهداشت، کشور، کار، کشاورزی، دارایی و در نهایت، نخست وزیری کشور را در کارنامه خود دارد.

در سال ۱۳۴۶ کارشناس بانک جهانی و صندوق بین المللی پول بود. در همین سال به ریاست مجمع سالانه این بانک برگزیده می شود.

تدوین و تصویب نخستین قانون کار کشور، لوایح قوانین امور استخدامی، تلاش در جهت تثبیت قیمت نفت ایران و تزریق در آمدهای حاصل از فروش نفت به ارکان و زیر ساخت های اقتصادی کشور، خاصه اقتصاد کشاورزی ایران از جمله اقدامات در دوره نخست وزیری او در فاصله سال های۱۳۵۶ تا ۱۳۵۷ بود.</s>OPEC agreed on modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

“OPEC made an exceptional decision today ... After two and a half years, OPEC reached consensus to manage the market,” said Iranian Oil Minister Bijan Zanganeh, who had repeatedly clashed with Saudi Arabia during previous meetings.

He and other ministers said the Organization of the Petroleum Exporting Countries would reduce output to a range of 32.5-33.0 million barrels per day. OPEC estimates its current output at 33.24 million bpd.

“We have decided to decrease the production around 700,000 bpd,” Mr. Zanganeh said.

However, how much each country will produce is to be decided at the next formal OPEC meeting in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia.

Many traders said they were impressed OPEC had managed to reach a compromise but others said they wanted to see the details.

“This is the first OPEC deal in eight years! The cartel proved that it still matters even in the age of shale! This is the end of the ‘production war' and OPEC claims victory,” said Phil Flynn, senior energy analyst at Price Futures Group.

Saudi Energy Minister Khalid al-Falih said on Tuesday that Iran, Nigeria and Libya would be allowed to produce “at maximum levels that make sense” as part of any output limits.</s>Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.

That represents a strategy shift for Riyadh, which has previously said it would reduce output only if every other OPEC and non-OPEC producer followed suit. Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions.

The Saudi and Iranian economies depend heavily on oil but in a post-sanctions environment, Iran is suffering less pressure from the halving in crude prices since 2014.

Riyadh, on the other hand, faces a second year of record budget deficits and is being forced to cut the salaries of government employees.

"Does the salary cut indicate the Saudis are ready for a fight or does it indicate that they are ready for a deal," said an OPEC source from a Middle Eastern producer, when asked about the Saudi shift.

Saudi Arabia is by far the largest OPEC producer with output of more than 10.7 million barrels per day (bpd), on par with Russia and the United States. Together, the three largest global producers extract a third of the world's oil.

Iran's production has been stagnant at 3.6 million bpd in the past three months, close to pre-sanctions levels although Tehran says it wants to ramp up output to more than 4 million bpd when foreign investments in its fields kick in.

"Iran is not losing as much as Saudi. They are in a stronger position," an OPEC source traveling to Algeria this week said when asked about the shifting dynamic within OPEC.

The Organization of the Petroleum Exporting Countries will hold informal talks at 1400 GMT on Wednesday followed by a formal, regular meeting on Nov. 30.

Iranian Oil Minister Bijan Zanganeh said on Tuesday OPEC would try to reach a deal by November, while ruling out a compromise this week to address the glut.

At $45 per barrel, oil prices are well below the budget requirements of most OPEC nations. But attempts to reach an output deal have also been complicated by political rivalry between Iran and Saudi Arabia, which are fighting several proxy-wars in the Middle East, including in Syria and Yemen.

OPEC sources have said Saudi Arabia offered to reduce its output from summer peaks of 10.7 million bpd to around 10.2 million if Iran agreed to freeze production at around current levels of 3.6-3.7 million bpd.

For Gary Ross, a veteran OPEC watcher and founder of U.S.-based think tank PIRA, the offer was clearly unacceptable for Iran given that the Saudis have raised production steeply in recent years to compete for market share with U.S. shale production while Iran's output was limited by sanctions.

"Given the anti-Iranian sentiment in the kingdom, it is very difficult for Saudi Arabia to do anything in OPEC which looks too beneficial to Iran," Ross said.

“The salary cut highlights the urgency of the national transformation plan. If the Saudis did something aggressive to oil prices at this time, it would go against this urgency."

Falih said on Tuesday he saw no need for significant output cuts as the market was rebalancing itself. He added that Saudi Arabia was investing in additional spare capacity and could withstand the current trend in oil prices.</s>The Organisation of Petroleum Exporting Countries’ headquarters in Vienna. This is the first OPEC deal in eight years. PHOTO | AFP

OPEC agreed on Wednesday modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

"OPEC made an exceptional decision today ... After two and a half years, OPEC reached consensus to manage the market," said Iranian Oil Minister Bijan Zanganeh, who had repeatedly clashed with Saudi Arabia during previous meetings.

He and other ministers said the Organization of the Petroleum Exporting Countries would reduce output to a range of 32.5-33.0 million barrels per day. OPEC estimates its current output at 33.24 million bpd.

However, how much each country will produce is to be decided at the next formal OPEC meeting in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia.

Oil prices jumped more than 5 per cent to trade above $48 per barrel as of 2015 GMT. Many traders said they were impressed OPEC had managed to reach a compromise after years of wrangling but others said they wanted to see the details.

"This is the first OPEC deal in eight years! The cartel proved that it still matters even in the age of shale! This is the end of the ‘production war' and OPEC claims victory," said Phil Flynn, senior energy analyst at Price Futures Group.

Jeff Quigley, director of energy markets at Houston-based Stratas Advisors, said the market had yet to discover who would produce what: "I want to hear from the mouth of the Iranian oil minister that he’s not going to go back to pre-sanction levels. For the Saudis, it just goes against the conventional wisdom of what they’ve been saying.".

Saudi Energy Minister Khalid al-Falih said on Tuesday that Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits.

That represents a strategy shift for Riyadh, which had said it would reduce output to ease a global glut only if every other OPEC and non-OPEC producer followed suit. Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions earlier this year.

The Saudi and Iranian economies depend heavily on oil but in a post-sanctions environment, Iran is suffering less pressure from the halving in crude prices since 2014 and its economy could expand by almost 4 percent this year, according to the International Monetary Fund.

Riyadh, on the other hand, faces a second year of budget deficits after a record gap of $98 billion last year, a stagnating economy and is being forced to cut the salaries of government employees.</s>Saudi Energy Minister Khalid al-Falih said on Tuesday Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.

That represents a strategy shift for Riyadh, which has previously said it would reduce output only if every other OPEC and non-OPEC producer followed suit. Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions earlier this year.

The Saudi and Iranian economies depend heavily on oil but in a post-sanctions environment, Iran is suffering less pressure from the halving in crude prices since 2014 and its economy could expand by almost 4 percent this year, according to the International Monetary Fund.

Riyadh, on the other hand, faces a second year of budget deficits after a record gap of $98 billion last year, a stagnating economy and is being forced to cut the salaries of government employees.

"Does the salary cut indicate the Saudis are ready for a fight or does it indicate that they are ready for a deal," said an OPEC source from a Middle Eastern producer, when asked about the Saudi shift.

Iranian Oil Minister Bijan Zanganeh said on Wednesday talks about a deal to cap output were ongoing. OPEC will hold an informal meeting at 1400 GMT, following by a formal, regular gathering on Nov. 30.

Oil prices were up around 1.5 percent, with Brent crude LCOc1 nearing $47 per barrel by 1125 GMT.

Saudi Arabia is by far the largest OPEC producer with output of more than 10.7 million barrels per day (bpd), on par with Russia and the United States. Together, the three largest global producers extract a third of the world's oil.

Iran's production has been stagnant at 3.6 million bpd in the past three months, close to pre-sanctions levels although Tehran says it wants to ramp up output to more than 4 million bpd when foreign investments in its fields kick in.

"Iran is not losing as much as Saudi. They are in a stronger position," an OPEC source traveling to Algeria this week said when asked about the shifting dynamic within OPEC.

Saudi oil revenue has halved over the past two years, forcing Riyadh to liquidate billions of dollars of overseas assets every month to pay bills and cut domestic fuel and utility subsidies last year.

"The Iranians have lived with a very tough macro backdrop for many years, and are not used to the government’s benevolence - whether subsidies, employment or spending contracts - in the manner the Saudis are," said Raza Agha, chief Middle East economist at investment bank VTB Capital.

"So a sustained drop in oil prices has a more difficult social impact on Saudi."

However, with unemployment in double digits, Tehran is also facing calls to maximize oil revenues and President Hassan Rouhani is under pressure from conservative opponents to deliver a faster economic recovery.

"The nation is still grappling with the sanctions overhang and an inability to create the jobs it needs, on top of longer-term structural issues,” said Emad Mostaque, strategist at London-based consultancy Ecstrat.

Iran's Zanganeh said on Tuesday OPEC would try to reach a deal by November, ruling out a compromise this week to address the glut.

At $45 per barrel, oil prices are well below the budget requirements of most OPEC nations. But attempts to reach an output deal have also been complicated by political rivalry between Iran and Saudi Arabia, which are fighting several proxy-wars in the Middle East, including in Syria and Yemen.

OPEC sources have said Saudi Arabia offered to reduce its output from summer peaks of 10.7 million bpd to around 10.2 million if Iran agreed to freeze production at around current levels of 3.6-3.7 million bpd.

For Gary Ross, a veteran OPEC watcher and founder of U.S.-based think tank PIRA, the offer was clearly unacceptable for Iran given that the Saudis have raised production steeply in recent years to compete for market share with U.S. shale production while Iran's output was limited by sanctions.

"Given the anti-Iranian sentiment in the kingdom, it is very difficult for Saudi Arabia to do anything in OPEC which looks too beneficial to Iran," Ross said.

“The salary cut highlights the urgency of the national transformation plan. If the Saudis did something aggressive to oil prices at this time, it would go against this urgency."

Falih said on Tuesday he saw no need for significant output cuts as the market was rebalancing itself. He added that Saudi Arabia was investing in additional spare capacity and could withstand the current trend in oil prices.</s>Two sources in the Organization of the Petroleum Exporting Countries said the group would reduce output to 32.5 million barrels per day from current production of 33.24 million bpd.

"OPEC made an exceptional decision today ... After two and a half years, OPEC reached consensus to manage the market," Iranian Oil Minister Bijan Zanganeh was quoted by Iran's SHANA news agency as saying, without giving details.

OPEC's informal meeting in Algeria was still continuing after five hours.

How much each country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia, sources said.

Oil prices jumped more than 5 percent to trade above $48 per barrel as of 1924 GMT. Many traders said they were impressed OPEC had managed to reach a deal but others said they wanted to see the details.

"This is the first OPEC deal in eight years! The cartel proved that it still matters even in the age of shale! This is the end of the 'production war' and OPEC claims victory," said Phil Flynn, senior energy analyst at Price Futures Group.

Jeff Quigley, director of energy markets at Houston-based Stratas Advisors, said the market had yet to discover who would produce what: "I want to hear from the mouth of the Iranian oil minister that he's not going to go back to pre-sanction levels. For the Saudis, it just goes against the conventional wisdom of what they've been saying.".

Saudi Energy Minister Khalid al-Falih said on Tuesday that Iran, Nigeria and Libya would be allowed to produce "at maximum levels that make sense" as part of any output limits which could be set as early as the next OPEC meeting in November.

That represents a strategy shift for Riyadh, which has said it would reduce output to ease a global glut only if every other OPEC and non-OPEC producer followed suit. Iran has argued it should be exempt from such limits as its production recovers after the lifting of EU sanctions earlier this year.

The Saudi and Iranian economies depend heavily on oil but in a post-sanctions environment, Iran is suffering less pressure from the halving in crude prices since 2014 and its economy could expand by almost 4 percent this year, according to the International Monetary Fund.

Riyadh, on the other hand, faces a second year of budget deficits after a record gap of $98 billion last year, a stagnating economy and is being forced to cut the salaries of government employees.

Saudi Arabia is by far the largest OPEC producer with output of more than 10.7 million bpd, on par with Russia and the United States. Together, the three largest global producers extract a third of the world's oil.

Iran's production has been stagnant at 3.6 million bpd in the past three months, close to pre-sanctions levels although Tehran says it wants to ramp up output to more than 4 million bpd when foreign investments in its fields kick in.

Saudi oil revenue has halved over the past two years, forcing Riyadh to liquidate billions of dollars of overseas assets every month to pay bills and cut domestic fuel and utility subsidies last year.

"The Iranians have lived with a very tough macro backdrop for many years..." said Raza Agha, chief Middle East economist at investment bank VTB Capital. "So a sustained drop in oil prices has a more difficult social impact on Saudi."

However, with unemployment in double digits, Tehran is also facing calls to maximize oil revenues and President Hassan Rouhani is under pressure from conservative opponents to deliver a faster economic recovery.

Oil prices are well below the budget requirements of most OPEC nations. But attempts to reach an output deal have also been complicated by political rivalry between Iran and Saudi Arabia, which are fighting several proxy-wars in the Middle East, including in Syria and Yemen.

OPEC sources have said Saudi Arabia offered to reduce its output from summer peaks of 10.7 million bpd to around 10.2 million if Iran agreed to freeze production at around current levels of 3.6-3.7 million bpd.

Riyadh has raised production in recent years to compete for market share while Iran's output was limited by sanctions. Minister Zanganeh has said Iran wanted an output cap of close to 4 million bpd.</s>Rashid Husain Syed is a journalist, energy analyst and consultant based in Toronto. For almost 25 years, he served as vice-president of a leading Saudi trading and consulting house.

Proving pundits wrong and overcoming skepticism, two days of round-the-clock deliberations in Algiers brought about a landmark agreement in which the Organization of Petroleum Exporting Countries agreed to slash output. The decision marks the end of the battle for market share.

“This is the end of the ‘production war’ – OPEC claims victory,” Phil Flynn, analyst at Chicago-based brokerage Price Futures Group, told Reuters. “The cartel proved that it still matters, even in the age of shale.”

Output will be slashed to 32.5 million barrels a day. In August, OPEC averaged 33.24 million barrels a day.

“We have decided to decrease the production around 700,000 [barrels a day],” Iranian Oil Minister Bijan Zanganeh told reporters after the meeting. “OPEC made an exceptional decision today. … After 2 1/2 years, OPEC reached consensus to manage the market,” he emphasized.

Apparently a sense of urgency had crept into OPEC ranks as officials sat down in Algiers for the marathon talks. “Our expectations about the rebalancing process have shifted,” OPEC president Mohammed Bin Saleh al-Sada said in his inaugural address, before the closed-door session.

“It is evident that there is now a greater degree of urgency to ensure the market returns to balance as quickly as possible,” he said.

Saudi Energy Minister Khalid al-Falih, the most influential voice in the meeting room, also added his weight. “We need a gentle adjustment to reassure the market,” he said at a briefing while flanked by Russian counterpart Alexander Novak.

With many predicting the cartel’s end, OPEC needed to act – a fact both realized and conceded.

Behind the scenes, diplomacy was in overdrive. Mr. Novak, Russia’s Energy Minister, met Mr. Zanganeh on Tuesday in what was reported to be a “new attempt to persuade Tehran to play ball.” Several other sources quoted by Reuters said Algeria and Qatar were also talking to Iran in a bid to rescue a deal.

The results were evident even before formal news of deal. For the first time, Iran indicated that it was ready. Mr. Zanganeh said his country would agree to curb production at close to four million barrels a day. The remarks represented a narrowing of the gap between Iran and Saudi Arabia.

Earlier Tuesday, Mr. al-Falih publicly conceded that Iran, Nigeria and Libya would be allowed to produce “at maximum levels that make sense” as part of any output limits, which could be set as early as the next OPEC meeting in November.

That represented a strategic shift in Riyadh’s position, too. Until then, the Saudis had emphasized that they would reduce output to ease a global glut only if all other OPEC and non-OPEC producers followed suit. Iran, however, had argued that it should be exempted from such limits as its production recovers after the lifting of sanctions on its oil trade.

Michael Wittner, global head of oil research at Société Générale in New York, thus had a point when he told a reporter that the deal to reduce output could “potentially be very significant” – not just for the number of barrels it could take out of production, but also because it signals that Saudi Arabia is considering a return to active supply management. “To me, the significance is way beyond that – they all sat down in a room and made a decision.”

The decision had an immediate impact. Markets surged. Prices spiked by almost 6 per cent. By Wednesday evening, Brent crude settled up by $2.72 (U.S.) – 5.9 per cent – at $48.69 a barrel, after hitting a two-week-plus high of $48.96. U.S. West Texas intermediate crude also rose by $2.38 – 5.3 per cent – to settle at $47.05, after a peak of $47.45, its highest since Sept. 8.

Interestingly, on the day OPEC acted, the U.S. Energy Information Administration also released its oil reserves data, underlining that U.S. crude supplies fell by 1.9 million barrels in the week ending Sept. 23. To some, it reflected tightening markets, especially if OPEC succeeds in implementing the true spirit of Algiers.

Despite all the obituaries, the cartel remains alive. OPEC is still relevant.</s>OPEC could announce an output-freeze deal on Wednesday in Algeria, although full details are unlikely to be firmed up before a formal meeting of the Organization of the Petroleum Exporting Countries in November, two OPEC sources said.

They spoke on condition of anonymity as no decision had yet been reached at OPEC's informal meeting in Algiers. The meeting has been going on for more than two hours.</s>
• Nigeria, Iran, Libya may be allowed to produce at maximum levels

The Organisation of Petroleum Exporting Countries (OPEC) wednesday agreed to cut its oil output for the first time since 2008, with Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices, reported AFP.

According to reports, two sources in OPEC said the group would reduce output to 32.5 million barrels per day (mbpd) from current production of 33.24mbpd.

How much each country will produce is to be decided at the next formal meeting of OPEC in November, when an invitation to join cuts could also be extended to non-OPEC countries such as Russia, sources said.

Responding to the news, oil prices jumped more than five per cent to trade above $48 per barrel after the outcome of OPEC’s informal meeting in Algeria took traders by surprise.

 Still, many said they wanted to see the details of the deal. “We don’t know yet who is going to produce what. I want to hear from the mouth of the Iranian oil minister that he is not going to go back to pre-sanction levels.

“For the Saudis, it just goes against the conventional wisdom of what they’ve been saying,” said Jeff Quigley, director of energy markets at Houston-based Stratas Advisors.

Saudi Energy Minister, Khalid al-Falih, said on Tuesday that Iran, Nigeria and Libya would be allowed to produce “at maximum levels that make sense” as part of any output limits which could be set as early as the next OPEC meeting in November.

That represents a strategy shift for Riyadh, which had said it would reduce output to ease a global glut only if every other OPEC and non-OPEC producer followed suit.

Iran also argued that it should be exempted from such limits as its production recovers after the lifting of EU sanctions earlier this year.

The Saudi and Iranian economies depend heavily on oil, but in a post-sanctions environment, Iran is suffering less pressure from the halving in crude prices since 2014 and its economy could expand by almost four per cent this year, according to the International Monetary Fund (IMF).

 Saudi Arabia, on the other hand, faces a second year of budget deficits after a record gap of $98 billion last year, a stagnating economy and is being forced to cut the salaries of government employees.</s>ALGIERS, Algeria – OPEC’s unexpected understanding to trim production shows the cartel still has the resolve – and even desperation – to try to guide energy markets higher. But don’t expect triple-digit oil prices anytime soon.

Ministers from the oil cartel reached a preliminary deal Wednesday in Algeria to cut production for the first time since the global financial crisis eight years ago. The size of the cut was modest – to between 32.5 million and 33 million barrels per day from just below current levels of around 33.2 million barrels per day.

Though limited, the decision came as something of a surprise – expectations were that once again the regional rivalry between Saudi Arabia and Iran would create a stalemate. Oil prices shot up by around 5 percent in the wake of the cut.

On Thursday, markets stabilized, with the benchmark New York rate 23 cents lower at $46.82 a barrel and the international standard, Brent, 34 cents lower at $48.87.

Any failure to enact the agreement could lead to a renewed drop. And that risk remains – the deal, after all, is not done yet.

Output levels for individual countries will have to be finalized at a meeting of the Organization of the Petroleum Exporting Countries in Vienna in November. OPEC agreed that Nigeria, Iran, and Libya would be exempted from making big cuts as their economies are already stymied by conflicts or sanctions.

The main concern ahead of the meeting centered on Iran, which has been resistant to cutting production, as it’s trying to restore its oil industry since emerging from international sanctions over its nuclear program earlier this year.

“We see this more as an act of desperation,” Commerzbank analyst Barbara Lambrecht said. “Saudi Arabia appears willing to bear the main brunt of the burden.”

Saudi Arabia, the world’s biggest producer, played a key role in the OPEC policies that helped push oil prices sharply lower over the past couple of years.

In the summer of 2014, oil prices were trading above $100 a barrel but increased output from non-OPEC countries, particularly the U.S., created an oversupply in the market. Instead of cutting production, OPEC opted to pump at high volumes to maintain market share and, seemingly, to drive U.S. shale oil and gas producers, who have higher operating costs, out of business.

Crude prices plunged, and in January of this year fell below $30 for the first time in more than a decade. The lower prices have hit many oil-producing countries hard, particularly poorer OPEC members Venezuela and Nigeria, but also non-OPEC states Russia and Brazil. It’s also taken a toll on Saudi Arabia – its public finances are not as strong as they were and the country’s credit rating has been downgraded.

Oversupply isn’t the only reason oil prices have remained under pressure. Weaker economic growth in energy-hungry China, for example, has had a big impact. Earlier this month, the International Energy Agency said growth in oil demand had slowed significantly during the third quarter.

OPEC’s hope now is that it will be able to get non-OPEC members, such as Russia, to get aboard its strategy to trim output.

“Good luck with that one!” quipped Michael Hewson, chief market analyst at CMC Markets. Moscow is still smarting from economic sanctions and the period of low prices, which have caused a painful recession and blown a hole in its state budget.

One potential impact of the understanding forged in Algiers is that any material increase in oil prices could encourage U.S. shale oil and gas producers back into the market, thereby offsetting any impact in prices – in the longer-term as it takes time to kick start production given financial constraints.

Once the OPEC deal is confirmed, Marino Valensise, Head of Multi Asset at Barings Asset Management, said oil prices will likely drift higher to between $55 and $60.

“At those levels, shale producers in the States will inevitably increase production and there will be no potential through that price level,” he said.
Former Prime Minister of Iran and one of the founders of OPEC Jamshid Amouzegar, who was involved in the 1975 OPEC siege, dies at the age of 93.