TEHRAN-  Iran’s Oil Minister Bijan Namdar Zanganeh said OPEC is unlikely to change its decision on production cut in this year, Shana news agency reported.

The minister made the remarks on Wednesday on the sidelines of signing a deal between National Iranian Oil Company (NIOC) and a consortium comprising Russia’s Zarubezhneft Company and Iran’s Dana Energy Company for development of two oilfields in Iran.
 
“Russians can pull out of the deal as they have made no commitment to OPEC to remain in the agreement until the end of 2018. OPEC also can change its decision but I doubt they will do it,” Zanganeh stated.

Members of OPEC and non-OPEC players including Russia have reduced their output since January 2017 under a pact aimed at supporting prices and reducing oversupply. They agreed in November 2017 to extend their oil cuts through 2018. 

Twenty-one nations are cutting supply in attempt to curb output by almost 1.8 million barrels a day. Iran is allowed to pump up to 3.8 million bpd under the deal.

Zanganeh told the Wall Street Journal newspaper that OPEC when it meets in June could agree to begin easing current curbs in 2019.

He also told the WSJ that Iran wanted OPEC to work to keep oil prices at around $60 per barrel to contain U.S. shale oil production, adding that Iran could produce about 100,000 bpd more. He did not say when Iran could raise its output.

MA