June 16, 2018 18:35

Iran Could Scuttle Attempts to Increase OPEC Output

Should Iran insist on its position and not accept the other members possible decision to increase production, the current output ceiling will continue

OPEC will meet with partners in Vienna, Austria, on June 22-23.

Saudi Arabia is keen to see higher oil prices to boost the valuation of Saudi Aramco ahead of a much-anticipated IPO on the one hand, yet it is under US pressure to keep prices at the present level

Iran, or any other member of the Organization of Oil Exporting Countries, can unilaterally thwart efforts to reach an agreement to raise the group’s oil production, as it requires a 100% consensus to secure a new pact, a prominent Iranian energy analyst from London University said.
“If Iran and Venezuela do not vote for an increase in the organization’s crude output, it will not materialize even if the United States asks Saudi Arabia to do so,” Narsi Ghorban was quoted as saying by ILNA on Saturday.
The US has reportedly asked Saudi Arabia, OPEC’s largest producer and de facto leader, and others to relax output restraints put in place in early 2017, as prices near $80 per barrel pose a threat to economic growth.
About speculations on OPEC’s decision during the June 22 meeting with its partners, Ghorban noted that in general, OPEC’s issues can only be solved by consensus and not with votes of 50% plus 1.

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