Iran to attend oil compliance meeting in Algeria

Meeting is scheduled to take place six weeks before US sanctions on Iran’s oil industry kick in

Iranian Oil Minister Bijan Zanganeh will attend a meeting of an Opec/ non-Opec committee that monitors output compliance, known as the JMMC, in Algeria in September, the Iranian Students’ News Agency (ISNA) reported yesterday.

Zanganeh’s goal in attending the meeting is to maintain Iran’s oil market share, ISNA reported. The meeting is scheduled to take place six weeks before US sanctions on Iran’s oil industry are due to take effect.

After months of underproduction, the Organisation of Petroleum Exporting Countries agreed with Russia and other oilproducing allies to raise output from July by returning to 100 per cent compliance with previously decided cuts. That would mean an output increase of roughly 1 million barrels per day.

Last week, Zanganeh sent a “letter of complaint” to his UAE counterpart after noticing that some Opec members were trying to adjust output, according to Shana, the news site of the Iranian oil ministry. Zanganeh told UAE Energy Minister Suhail Al Mazrouei, who holds the Opec presidency in 2018, that the JMMC should not distribute output increases among other producers.

Zanganeh’s comments underline the still-simmering tensions after Opec’s June meeting.

Saudi Arabia said the deal allowed countries able to produce more to meet the group’s overall conformity level, meaning some members, such as itself, could make up for shortfalls elsewhere.

Iran, which faces US sanctions, disagreed and criticised Saudi plans to boost output above targeted levels.