OPEC Production Pact Rejected

Iranian oil minister Gholamreza Aqazadeh today rejected any OPEC production deal that would allow Iraq and Iran to pump the same amount of oil, undercutting a sharp rise in oil prices that had begun earlier today.

The minister’s comments appeared to dash hopes which had been building during a day of behind-the-scenes bargaining here that the 13-nation cartel was about to clinch a deal to curb overproduction. Aqazadeh, speaking through an interpreter, told reporters, “I will never concede to parity.” The benchmark for U.S. crude, West Texas Intermediate, after jumping more than $1.40 a barrel for January delivery lost about half of that this afternoon to stand at $13.65 a barrel, up 67 cents, after Aqazadeh’s remarks.