The Organisation of the Petroleum Exporting Countries (Opec) has made a planned cut in oil production effectively conditional on the contribution from non-Opec producer Russian Federation, delegates said on Thursday as the group gathered in Vienna for a meeting aimed at supporting battered oil prices.
The West Texas Intermediate for January delivery decreased $0.36 to settle at $52.89 a barrel on the New York Mercantile Exchange, while Brent crude for January delivery decreased $0.52 to close at $61.56 dollars a barrel on the London ICE Futures Exchange.
The move would mean reducing production by more than 1 million bpd.
"We must be excluded from any decision to cut production as long as illegal U.S. sanctions are not lifted", Iran's Oil Minister Bijan Namdar Zanganeh said on Wednesday evening as he arrived in Vienna.
In October, the oil price reached a four-year high of $86, but since then the price has dropped again to about $60 per barrel.
Hours before the meeting, US President Donald Trump called on OPEC and its allies to keep oil production high, so that prices remained low for the foreseeable future.
In the latest sign of a clogged market, Asian gasoline refining margins have plunged to their weakest levels in seven years - so low that churning out this key motor fuel has become a loss-making business.
His Iraqi counterpart, Thamir Ghadhban, said: "I am optimistic that the agreement will stabilize the market, will stop the slide in the price (of oil)".
"A massive liquidation in long positions by money managers has dampened market confidence on oil prices considerably", said Benjamin Lu of Singaporean brokerage Phillip Futures. Washington and Beijing announced a 90-day truce last weekend, during which neither side will further increase punitive import tariffs. The United States is not part of any output-limiting initiative due to its anti-trust legislation and fragmented oil industry.
China's state council on Wednesday issued guidance to support employment as the economy slows, saying the country should pay "high attention" to the impact on employment from increasing economic headwinds.
The Organization of Petroleum Exporting Countries and its allies are desperate to shore up oil prices after a slump of more than $20 a barrel since October.