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Putin has come out in defence of Iran, saying the country should be allowed to boost its oil output — but that a deal for the rest of the cartel should be possible with Russia’s co-operation.

“Iran is starting from a very low position, connected with the well-known sanctions in relation to this country. It would be unfair to leave it on this sanctioned level,” he said.

“From the viewpoint of economic sense and logic, then it would be correct to find some sort of compromise.”

Putin also hinted that without a deal Russia’s oil output could rise.

“The oil companies, they are continuing to invest. Our oil output is increasing,” he said.

OPEC’s crude production climbed to a record last month as increased output from Gulf members made up for persisting losses in Nigeria and Libya, according to a Bloomberg survey.

Supplies from OPEC rose by 120,000 barrels a day to average 33.69 million a day in August amid increases by Iran, Iraq and Kuwait, the survey showed.

Iraq led the increases, boosting supplies by 70,000 barrels a day to 4.48 million a day. Iran raised production by 60,000 barrels a day to 3.62 million as it continues its return to global markets after the end of international sanctions in January. Saudi Arabia, the group’s biggest and most powerful member, raised output by 30,000 barrels a day to an all-time high of 10.69 million a day.

Oil prices have struggled to push beyond US$50 a barrel this year after a crippling oversupply in the global market pushed prices to lows of $28 a barrel in January.