Iran urges OPEC members to refrain coming from unilateral actions

A support vessel maneuvers near the crude oil tanker 'Devon' as This particular sails through the Persian Gulf towards Kharq Island oil terminal to transport crude oil to export markets in Bandar Abbas, Iran, on Mar. 23, 2018.

Ali Mohammadi | Bloomberg | Getty Images

A support vessel maneuvers near the crude oil tanker ‘Devon’ as This particular sails through the Persian Gulf towards Kharq Island oil terminal to transport crude oil to export markets in Bandar Abbas, Iran, on Mar. 23, 2018.

Iran has asked fellow OPEC members to “refrain coming from any unilateral measures”, warning which would likely undermine the unity of OPEC, following reports which Saudi Arabia has raised its oil production to a record high This particular month.

As Tehran seeks ways to counter U.S. sanctions which would likely restrict its exports along with also eat into its market share, Iranian Oil Minister Bijan Zanganeh wrote to his UAE counterpart, Suhail al-Mazrouei, who holds the OPEC presidency in 2018, urging him to remind OPEC members to adhere to last month’s agreement.

“Any increase from the production by any member country beyond commitments stipulated in OPEC’s decisions … would likely constitute breach of the agreement,” Zanganeh wrote from the letter seen by Reuters along with also reported by Iranian state media.

“I hereby request your excellency to remind OPEC member countries to adhere to their commitments… refrain coming from any unilateral measures undermining the unity along with also independence of the OPEC,” he added.

OPEC agreed with Russia along with also additional oil-producing allies on June 23 to raise output coming from July, with Saudi Arabia pledging a “measurable” supply boost, although giving no specific numbers.

OPEC along with also non-OPEC countries said they would likely raise supply by returning to 100 percent compliance with previously agreed output cuts, after months of underproduction. which would likely be roughly 1 million barrels per day of crude oil output increase according to OPEC officials.

although since then sources familiar with Saudi oil thinking have briefed the market about an imminent rise in Saudi output to a record. Last week, a source told Reuters which Saudi output would likely rise to 11 million bpd in July, a whole 1 million bpd above May.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

14 + nineteen =