Iran Says It Won’t Join Immediate OPEC Production Cut
Iran wouldn’t coordinate a crude-oil output reduction with the Organization of the Petroleum Exporting Countries until its own production returns to pre-sanctions levels, a top Iranian oil official said, potentially dashing market hopes of a supply cut.
Iran “won’t consider a cut” until its exports have increased by 1.5 million barrels a day over current levels of roughly 1.1 million barrels a day, the official said. The country is furiously restarting its oil exports after the lifting of nuclear-related western sanctions, which had forced its production down by more than a third.
Russian energy ministerAlexander Novak said Thursday that he would be willing to consider coordinating production cuts at an emergency OPEC meeting in February proposed by Venezuela, one of the cartel’s 13 members. Russia isn’t an OPEC member.
But the Iranian oil official said Iran also wouldn’t support calling an emergency meeting unless there was a consensus on what action should be taken—effectively scuttling the idea for now.
“If the meeting takes place and there is no agreement, it will have a negative impact on prices,” the official said.
The Iranian official didn’t rule out supporting an emergency meeting, as long as Iran wasn’t asked to reduce its production.
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