OREANDA-NEWS. Nigeria's oil minister Emmanuel Ibe Kachikwu said the chances of an agreement between oil producers to freeze output to support oil prices are "very high" despite failing to gain support for the initiative from a number of key oil producers.

Oil ministers from Saudi Arabia, Russia, Qatar and Venezuela championed a proposal to hold production steady at January levels at a meeting in Doha on 16 February, on the condition that other Opec and non-Opec producers agreed to join in.

But, while several major producers, among them Kuwait, the UAE and Oman, have since thrown their weight behind the move, others like Iran and Iraq are proving significantly more difficult to sway. Iran's oil minister Bijan Namdar Zanganeh last week called suggestions that Iran should freeze production at current levels "a joke", while Iraq has thus far refused to commit.

Still, Kachikwu said there is real cause for optimism as producer countries continue to schedule further talks aimed at reaching a consensus on the issue.

"In terms of the production freeze, we are working on the issue. There is a lot of conversation going on, and I think there is a lot of consensus building on the issue of the freeze," Kachikwu said. "I think right now the effort is to get everybody aligned on the issue of a freeze. I think the chances [for the deal] are very high."

But, with key countries like Iraq and Iran yet to commit to the proposal, Kachikwu conceded that "it is still a work in progress".

Oil prices are down more than 65pc since mid-2014, just months before Saudi Arabia led its other Opec members to adopt a policy of defending market share over price in the face of rising production from outside Opec. Brent is trading at $35.10/bl, down from $114.80/bl in late June 2014.

"In terms of what needs to be done to lift up those numbers, I think what is going on is a two stage approach," Kachikwu, said referring to the 16 February Doha meeting. "First, let us be certain that participants are going to at least be disciplined enough to observe the freeze when we all reach an agreement on the freeze issue." And if the freeze is not enough to lift prices to "comfortable levels," then "we will be looking at whether there is any need for a cut," he said.

Kachikwu said he hopes to see oil prices "in the range of $45-50/bl" by the end of the year.

Venezuelan oil minister Eulogio Del Pino said last week that Venezuela, Russia, Qatar and Saudi Arabia had "agreed to hold an enlarged meeting" with other producers "in mid-March" to discuss the proposal to freeze output. Del Pino said Opec and non-Opec producers consulted by the four Doha proposal countries have reached "almost unanimous consensus that the March meeting is necessary, and that it is necessary to sign an agreement under which the main producers freeze output until July."

Saudi oil minister Ali Naimi agreed, saying last week that he believed a meeting in March was probable.