Wednesday, November 30, 2022

Iran Hopeful about OPEC Deal on Output Cuts

Iran has voiced optimism that a deal is possible among member states of the Organization of the Petroleum Exporting Countries (OPEC) to freeze production to help stabilize the prices.

“The [ongoing] discussions show that OPEC can reach a sustainable agreement over its production and the management of the market,” Iran’s Petroleum Minister Bijan Zanganeh was quoted by the domestic media as saying.

“If we reach an agreement – which I’m optimistic we will – the prices will rise. This is what the international economy also demands,” Zanganeh told reporters after meeting the visiting Algerian Energy Minister Noureddine Boutarfa, Shana news agency reported.

The Iranian minister emphasized that Iran had carefully studied Algeria’s proposal – as presented by Boutarfa – on the production of each country. He said Iran would present its views on the proposal in the upcoming OPEC meeting in Vienna this coming Wednesday.

On a related front, Shana quoted Boutarfa as saying that Algeria’s proposals called for 1.1 million barrels per day (mb/d) in cuts by OPEC members and decreases totaling 600,000 bpd by non-members.

“If OPEC members … agree, oil prices will reach $50 to $55 next year and $60 by the end of the year,” Bouterfa was quoted as saying.

Zanganeh further emphasized that a key topic in his discussions with the Algerian energy minister was a plan to exempt Iran from OPEC production cut scheme.  He acknowledged that Libya and Nigeria could also be excluded from the plan, but said Iraq had presented no request to that effect as of yet.

OPEC member states in their last meeting that was held in Algeria in September agreed to reduce their collective production to 32.5 mb/d. Iran, Libya and Nigeria were exempted from the plan.

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