published Apr 12th 2016, 4:01 pm, by Ilya Arkhipov, Stephen Bierman and Elena Mazneva

(Bloomberg) —
Russia sees a deal on freezing oil output as possible regardless of Iran’s stance.

“There is hope,” Dmitry Peskov, the Kremlin’s press secretary, said following the latest conversation between Russian Energy Minister Alexander Novak and his Saudi counterparts.

At least 16 nations including the world’s two largest crude oil producers will gather in Doha on April 17 to discuss freezing output at January levels in order to stabilize an oversupplied oil market. Saudi Arabia has said it would only commit to a production cap if Iran follows suit, a proposal that Iran’s oil minister has dismissed as “ridiculous.”

Novak spoke to Saudi Petroleum Minister Ali al-Naimi by phone on Tuesday to discuss prospects for an oil production freeze, a person with direct knowledge of the matter said. Russia is hopeful that a deal can be reached, the person said, asking not to be identified because the discussions are private and declining to comment on whether anything was agreed on the call.

Oil surged as the two countries were seen agreeing on a potential production freeze. West Texas Intermediate closed at $42.17 a barrel in New York, the highest level in more than four months.

Novak has briefed Putin on the results of his latest talks, Peskov said, without saying when the talks took place. Novak’s press service declined to comment. Saudi Arabia’s oil ministry couldn’t immediately be reached for comment.

Interfax reported on Tuesday that Saudi Arabia and Russia have reached an agreement that means the Persian Gulf nation will make a final decision on freezing oil production regardless of whether Iran agrees to join.

To contact the reporters on this story: Ilya Arkhipov in Moscow at iarkhipov@bloomberg.net ;Stephen Bierman in Moscow at sbierman1@bloomberg.net ;Elena Mazneva in Moscow at emazneva@bloomberg.net To contact the editors responsible for this story: Will Kennedy at wkennedy3@bloomberg.net Carlos Caminada, Jim Efstathiou Jr.

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