Iran’s actions based on OPEC decision: Zanganeh

Iran will take measures and act based on the resolution adopted by the Organization of Petroleum Exporting Countries (OPEC) in its recent meeting in Vienna, said the country’s oil minister.

According to Mehr News Agency, Bijan Namdar Zanganeh noted that some countries want to send a positive signal either to the market or to the US, as if this issue has nothing to do with OPEC’S latest meeting, adding, “The resolution signed with OPEC’S 14 member states is what Iran will act upon.”

The organization’s 14 member states: Algeria, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates (UAE) and Venezuela convened in OPEC’S 174th meeting in the Austrian capital, Vienna.

OPEC member states once again underlined their full adherence to the resolution adopted by OPEC in November 2016.

The cooperation agreement reached between OPEC and NON-OPEC member states calling for a reduction of 1.8 million and 600,000 barrels of oil per day will be valid, Zanganeh maintained.

Since OPEC and NON-OPEC members oversupplied oil more than their commitments in the past month, it was decided to reduce the commitment rate from 152 to 100 percent, he added.

He pointed out that oil production in May stood at about 780,000 barrels less than the rate of approved oil freeze.

In this meeting, Russia said that it cannot continue freezing oil and should increase its production, he said.

It is expected that OPEC and its NON-OPEC allies will increase oil production by about one million barrels of oil per day (bpd) as of July, Zanganeh stipulated.

In its latest meeting, OPEC agreed with Congo’s membership to the club.