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Zanganeh Rules Out Emergency OPEC Summit

Zanganeh Rules Out Emergency OPEC SummitZanganeh Rules Out Emergency OPEC Summit

OPEC members are unlikely to convene an emergency meeting ahead of the group's scheduled summit in June, Oil Minister Bijan Namdar Zanganeh said, as his Emirati counterpart supported Iran's return to the global crude market after the sanctions removal.

"Iran has not received any proposal for an emergency OPEC meeting up to now," Zanganeh said. "Such a meeting cannot be held unless all members reach consensus."

He made statements on the sidelines of a meeting with ex-German chancellor Gerhard Schroeder on Tuesday, Shana reported.

Nigeria's Petroleum Minister Emmanuel Ibe Kachikwu claimed on Tuesday a "couple" of members of the Organization of Petroleum Exporting Countries had requested such a meeting.

But two OPEC delegates who did not wish to be named dismissed the idea, stressing that OPEC has no plan to hold an emergency meeting to discuss crumbling crude prices.

Global benchmark Brent is trading at around $30 a barrel, its lowest levels in 12 years, having crashed by more than 70% since mid-2014.

Suhail bin Mohammed al-Mazrouei, the UAE's oil minister, also said he saw no need for an “artificial move” by OPEC, adding that oil prices are bound to recover later in the year.

Many investors and analysts have predicted a bearish outlook for an oil market that is grappling with an excess of supply and resilient producers unwilling to cut output to defend market share.

According to reports, OPEC members on average produced 31.5 million barrels a day in 2015 against an output ceiling of 30 million bpd.

The imminent lifting of sanctions against Iran and the country's determination to boost oil production capacity by 500,000 bpd in the short-term add to concerns that prices may fall below the $30-per-barrel range.

On Iran's ambitions to boost output, Mazrouei said every country has the right to plan according to its strategies.

"I think all the members, including Iran, have the right to increase their production. I don't think we are going to restrict anyone," he said.

Financialtribune.com