Iran: OPEC may need extraordinary meeting on output changes
OPEC may need to hold an extraordinary meeting should the organization fail to prevent member countries from adjusting their crude production without approval, said Iran’s oil minister on Wednesday.
Bijan Namdar Zanganeh said he has sent a ‘letter of complaint’ to the Organization of Petroleum Exporting Countries after noticing that some members were seeking to make such adjustments, Shana reported.
On June 22, OPEC ministers announced a deal to increase oil supplies from the producer group, which has been capping output in order to balance the market and boost prices for the last 18 months. The agreement came after a week of tense negotiation at OPEC’S headquarters in Vienna, Austria.
OPEC members agreed to start pumping more oil, though the agreement will not end the group’s 18-month-old deal to limit output. Instead the producers are seeking to cut no deeper than 1.2 mbdd, the target they set in November 2016.
OPEC’S official statement said members agreed to return to 100 percent compliance with the 2016 deal beginning on July 1. The group said compliance reached 152 percent in May 2018, which means OPEC was cutting about 600,000 bpd more than it intended.
OPEC’S agreement with Russia and other producers to limit oil output has helped to clear a global supply overhang that weighed on prices for years.