Fri. Mar 29th, 2024

Vienna, July 1: Organization of the Petroleum Exporting Countries (OPEC) and its allies are looking all set to extend crude oil supply cuts soon until the end of this year as Iran joined the top oil producers Russia, Iraq, and Saudi Arabia in endorsing the policy which aimed at supporting the oil prices amid a weakening world economy.

According to Reuters news reports, Iranian oil minister Bijan Zanganeh has told reporters he would back prolonging oil export cuts to by six to nine months. Iran, in the past, has objected to the policies put forth by its arch-foe Saudi Arabia, stating the Kingdom was very close to the United States.

Upon arriving in Vienna, Zanganeh told reporters, “I have no problem with a production cut … It’s going to be an easy meeting as my stance is very clear.”

The US is not an OPEC member, not it is going to participate in the pact. It has demanded Saudi Arabia to pump more crude oil in order to compensate for the lower exports from Tehran after imposing sanctions against Iran over its nuclear capabilities and program.

Russia-led OPEC and its allies have been attempting to cut short crude oil exports since 2017 in order to prevent prices from shifting in the midst of bitter production from the US, which became top global producer this year ahead of Riyadh and Moscow.

Russian President Vladimir Putin on Saturday said he had agreed with the Kingdom to extend the current output cuts of 1.2m barrels per day by six-nine months until the end of 2019 or March 2020.

Khalid al-Falih, Saudi Arabian energy minister has stated the pact would be expected to be enlarging by nine months and that no deeper reductions would be needed. On Sunday, Falih said, “It’s a rollover and it’s happening.”

Zanganeh has on Monday said the member states of the OPEC needs to get united among themselves, adding Tehran supported cooperation with the non-OPEC member states.

In a report by Iranian oil ministry news service Shana, Zanganeh, ahead of leaving Iran to attend OPEC conference in Vienna, said, “Without unity among members of OPEC, it is meaningless to plan cooperation between OPEC and non-OPEC countries”

 

Also read: Iran’ oil minister Zanganeh calls for unity among OPEC for cooperation with non-OPEC nations

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