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Majority of OPEC Members Agree on Output Cut: Iran

(Wednesday, December 02, 2015) 18:19

Tehran, Dec. 2 (Shana) – Majority of member states of the Organization of Petroleum Exporting Countries (OPEC) agree on a reduction in the crude oil production to keep up prices with an exception of Saudi Arabia and Persian Gulf Arab countries, said director general of OPEC and energy forums in the Iranian Ministry of Petroleum.

 "Under current international conditions between Iran and certain Persian Gulf littoral states, it is unlikely that these countries voluntarily cut their output so that Iran can return to the global crude oil markets provided that political relations improve," Mehdi Asail said on Wednesday.
 
According to the Iranian official who was talking to Shana on the eve of the 168th ministerial meeting of OPEC to be held in Vienna on Friday, the real challenge before the organization is lack of a genuine agreement over the way of managing supply in order to establish stability in the oil market.
 
Iran has officially announced that it will increase production for 500,000 barrels a day immediately after sanctions are lifted. Another increase of similar amount will follow within weeks so that Iran's export will be back to the pre-sanctions quota.
 
Minister of Petroleum Bijan Zangeneh has said hat Iran does not need the permission of any country to increase its crude oil production.
 
Saying that ousting Iran's oil from the market was an "oppressive and illegal" act, the minister stressed, "Our return to the market does not require the permission of anybody. We are not expecting approval of the letter by other member states."

Speaking to Shana, he confirmed Iran has sent letters to the member states to inform them of the intention to boost its output.

"The letters were meant to inform them to include the increase in the production plans of the organization," he added, "Iran did not write letter for their approval."