NEWS
Oil  

Iran Urges OPEC to Cut Output to Curb Oil Price Fall

Iran’s envoy to the Organization of the Petroleum Exporting Countries (OPEC) warned that global oil prices would slump to $40 a barrel without a significant cut in the output of OPEC and its allies.

Production will need to be reduced by at least 1.4 million barrels a day to prevent oversupply, Hossein Kazempour Ardebili said in an interview with Bloomberg.

Kazempour noted that OPEC may be unable to reach an agreement to curb supply when it meets in Vienna later this week.

OPEC seeks consensus on next year’s supply policy, with crude having slumped into a bear market last month.

While Saudi Arabian Crown Prince Mohammad bin Salman has agreed with Russian President Vladimir Putin to continue managing the market, Qatar in a surprise move on Monday said it will exit OPEC in 2019, threatening its cohesion. OPEC decisions need to be unanimous to be implemented.

“I don’t think they are thinking to have a cut -they may want to have excuses, or have a proposal on the table that is not grabbed by others, and say ‘OK, I told you so’,” Kazempour said.

The nations which have “put the barrels into the market in the last three months should cut it back,” he added.

“I doubt, with the failure they had in the last three months, that the declaration of cooperation gets extended,” Kazempour stated. “Why institutionalize a failure? And it needs unanimity to be extended.”

He also raised the prospect that OPEC, which has held together for more than half a century through war, sanctions and price slumps, may break apart.

“There is a sense of frustration prevailing, especially among small producers not at the level of Qatar,” because oil’s slump and the lost revenue gives them a reason to leave, the Iranian envoy said.

News No: 2812
Date: 2018/12/05 - 20:21
News Source: Tasnim News

OPEC  Oil Price  Petroleum  Qatar 

Comments:

Leave a Comment:

   
   
   
 

OPEC Unplanned Supply Losses Could Double Cutback

OPEC may be about to succeed by accident, again. Unplanned supply losses from members Iran and Venezuela could effectively double the intended cutback of 800,000 bpd OPEC pledged last week, according to the International Energy Agency, Bloomberg reported.
 

Oman to Cut Crude Output by 2%

Oman will cut oil output by 2% from January for an initial period of six months, according to a letter sent to customers of Omani oil by the country’s oil and gas ministry.
 

Japan Will Resume Iran Crude Purchases in Jan.

Japanese refiners will start buying Iranian crude oil in January, but will only continue buying until March to make sure they don’t get on the bad side of Washington in case the 180-day sanction waivers are not extended, S&P Global Platts reports, citing the head of the country’s Petroleum Association.
 

OPEC, Non-OPEC Will Sign Coop. Agreement

Ageneral cooperation agreement between OPEC and non-OPEC countries will be signed in three months in Saudi Arabia, the UAE energy minister said Tuesday.
 

Iran's Oil Exports Increase after US Sanctions

Iranian President Hassan Rouhani stressed Washington's failure to prevent his country's oil exports, expressing pleasure that crude sales have even increased after the US sanctions.
 

Iraqi Minister: Crude Prices Will Rise Over Time

Iraqi Oil Minister Thamer Ghadhban said on Monday he expected the fall in oil prices to stop and for prices to rise over time, adding that if OPEC had not cut production, prices would have dropped to $45-50 per barrel.
Upcoming Events
Publications
 Mines & Metals

Mine & Business Today

 Scrap & Recycling

Ahangan

Our partners