Tensions are brewing between Iran and Saudi Arabia as OPEC ministers prepare to hammer out the details of a proposed production plan.

OPEC sources told Reuters on Monday that a meeting of experts failed to agree on how a proposed 1 million barrels per day production cut would be implemented.

OPEC members agreed in September to cut the group’s output range to between 32.5 million to 33 million bpd, down from a record output of 33.8 million bpd in October.

The plan would be the first production plan implemented by OPEC since the 2008 financial crisis.

OPEC sources told Reuters that Saudi Arabia has offered to lower its output by 500,000 bpd and said it would like Iran to hold production under 4 million bpd.

According to data collected by S&P Global Platts, Iranian production rose to 3.67 million bpd in October.

Saudi Arabia has consistently pumped over 10 million bpd since oil prices began declining in 2014.

Iran has expressed reluctance about holding production below 4 million bpd as it focuses on recovering market share now that Western sanctions have been lifted.

Disagreements between Iran and Saudi Arabia scuttled two previous attempts to reach a deal this year.

OPEC is also contending with push back from Iraqi officials who have suggested that oil revenues provide crucial funding for the country’s fight against Islamic State, Reuters said.

Iraq, currently the group’s third largest producer, has also challenged the accuracy of OPEC production data that would be used to determine the size of a production cut.

When asked about the possibility of a deal, Indonesian Energy Minister Ignasius Jonan told Reuters on Tuesday that the “feeling today is mixed.”

Saudi Arabian Energy Minister Khalid al-Falih said over the weekend that he believes the oil market will re-balance in 2017 even if OPEC fails to reach a deal.

The International Energy Agency warned earlier this month that global oil inventories would likely continue to grow in 2017 if OPEC cannot agree on production cuts.

OPEC ministers will meet on November 30 in Vienna to discuss the production deal.


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