June 20, 2018 18:29

OPEC Consensus Over Output Hike Unlikely

Iran’s oil minister believes a potential consensus over oil output hike during OPEC’s Friday meeting is unlikely as there is no unanimity among members

OPEC reached an agreement with Russia in 2016 to keep 1.8 million bpd off the market.

Zanganeh rejected any increase, including the compromise by some OPEC officials for a 300,000-600,000 barrels per day hike in the second half of the year

Oil Minister Bijan Namdar Zanganeh rejected leaving the 2016 pact of curbing oil output by OPEC members.
"Every decision in OPEC needs unanimity … I do not believe that we can reach an agreement in this meeting," Zanganeh was also quoted as saying by Shana, Oil Ministry's news portal, late on Tuesday.
His comments show that OPEC members are set to clash when they meet on June 22-23 in Vienna, Austria, to discuss the proposal to end global output cuts.
OPEC's leading oil producer Saudi Arabia and non-OPEC member Russia have said they are prepared to hike output to appease USA about supply and prices.
However, according to the Iranian minister, the market's current need for more oil is rather exaggerated and could cause great damage to global markets.

Premium

Subscribe to the Financial Tribune to continue reading this article or Log in to your account if you are already a subscriber.

Find out more about our subsciption plans here.

Iran Oil and Gas News