TEHRAN – OPEC+ agreed to ease its oil-output cuts from 7.7 million barrels per day (bpd) to 7.2 million bpd in January 2021, down 500,000 bpd, Iranian Oil Minister Bijan Namdar Zanganeh said, adding it was a wise decision.

Zanganeh made the remarks after the 12th meeting of the oil and energy ministers of the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC members (known as OPEC+) held on Thursday, adding OPEC+ meetings need to be held monthly to decide on the curbs for other months.

If further easing was needed, it should not be more than 500,000 barrels per day, he said, emphasizing the decision for future months would depend on crude oil supply and demand in the market.

Due to the uncertainty in the market, monthly meetings could help to maintain market stability and support OPEC and non-OPEC’s objective to create a fair price in the market.

I do not think the decision will have an influential effect on the market in terms of decreasing the prices as producing 500,000 barrels is not a big amount.

“The current decision has been made only for one month and further changes and decisions will be made in the upcoming months,” Zanganeh said.

OPEC+ was discussing a proposal to gradually ease its oil-output cuts next year, seeking to resolve divisions that emerged at the core of the cartel over several days of fractious negotiations.

The meeting was due to be held on Thursday December 1 in Vienna but it was postponed to Thursday.

“What is important is that we negotiate and have the patience to reach a conclusion,” Zanganeh said on November 30.

The OPEC meeting on Monday November 30 evening lasted more than four hours.

EF/MA