Bid & Tender
Iran: OPEC Members Seem to Concur with Refreshing Cut Plan

Date : May 25, 2017

Iranian Minister of Petroleum Bijan Zangeneh says extension of the output cut plan of the Organization of the Petroleum Exporting Countries (OPEC) seems to have been unanimously endorsed by the group's members.


Speaking on Wednesday, the official said: "Given the remarks voiced by oil and energy minister of OPEC member states, it is apparent that there is an agreement between members of the organization to extend the body's output cut plan."


Asked what Iran would propose regarding extension of OPEC output cuts in Thursday's meeting of the body's members, Zangeneh said, "We will have no special proposals."


Whether Iran would second 6 or 9-month extension of the plan was another question from the official who said: "Iran has no problem with such extensions and would agree with any decision made by a majority of OPEC members." 


"Iran will not reduce its output," he said responding to a question about whether Iran would cut its crude oil output.


Regarding the new Washington-Riyadh arms deal and probability of Saudi obstructionism in the 172nd OPEC meeting, he said: "We have not seen any such signs so far; what we have seen so far indicates that Saudis are keen on seeing an upward trend in the prices."


OPEC members agreed late last year to cut collective production at the start of 2017 by 1.2 million barrels a day for six months. Non-OPEC producers, including Russia, also agreed to cut their output by another, roughly 600,000 barrels a day.


A monthly report from the International Energy Agency released Tuesday pegged OPEC’s member compliance with the cuts at 96%—a historically high compliance rate for the group.