Oil-producing countries looked unlikely to reach a deal to lift languishing prices at a meeting on Friday after Iran, Iraq and Russia swiftly rejected a surprise proposal that appeared to have been floated by Saudi Arabia.

Saudi Arabia, the largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), was prepared to propose members cut oil output by 1 million barrels per day next year if non-OPEC countries joined in, industry publication Energy Intelligence reported.

A Saudi source said later the report was "baseless" but declined further comment and a source at Energy Intelligence said it stood by its story. Oil prices rose 3 percent on Thursday but analysts said a global deal would be hard to reach.

Saudi Arabia has long insisted it would cut production only if fellow OPEC members and non-OPEC countries joined in. The report quoted a senior OPEC delegate as saying the Saudis would agree to cuts if Iraq freezes production rises and Iran and non-members such as Russia, Mexico, Oman and Kazakhstan contribute.

But Russia and OPEC members Iran and Iraq quickly rejected the idea. OPEC and non-OPEC producers have not cooperated to tackle low oil prices since they joined forces 15 years ago to help the market recover from the 1998 financial crisis.

Since then top non-OPEC producer Russia has repeatedly resisted calls for joint action and grown its output by 70 percent. Iran also wants to increase output after years of Western sanctions.

OPEC's policy meeting will be held in Vienna on Friday. OPEC also held a rare informal meeting there on Thursday but the Saudis made no proposals, according to ministers and delegates.

"We do not accept any discussion about increases of Iran production after the lifting of sanctions. It is our right and anyone cannot limit us to do it. We will not accept anything in this regard," Iranian oil minister Bijan Zangeneh told reporters in Vienna before the informal meeting.

source: http://www.reuters.com/article/2015/12/03/us-opec-meeting-idUSKBN0TL0LY20151203

One of the major reasons the Saudis are pushing for reduction in oil production is cause reduced oil revenue is causing some of
the influential business class to push Riyadh
to quickly find an end to its expensive war
in Yemen. The Saudis are bleeding money, and they want to get back some of it through a hike in oil price.