Some countries want to give a positive signal either to the market or the US, so that this issue has nothing to do with OPEC’s latest meeting, Bijan Namdar Zanganeh said, adding, “the resolution signed with OPEC’s 14 member states is what Iran will act upon.”
The cooperation agreement made between OPEC and non-OPEC member states to reduce 1.8 million and 600,000 barrels of oil per day will be valid, Zanganeh maintained.
Since OPEC and non-OPEC members oversupplied oil more than their commitments in the past month, it was decided to reduce the commitment rate from 152 to 100 percent, he added.
In this meeting, Russia said that it cannot continue freezing oil and should increase its production volume, he opined.
He went on to say that oil production volume in May stood at about 780,000 barrels less than the rate of approved oil freeze.
It is expected that OPEC and its non-OPEC allies will increase oil production volume about one million barrels of oil per day (bpd) as of July, Zanganeh stipulated.
A number of 14 countries including Algeria, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates (UAE) and Venezuela convened in in OPEC’s 174th meeting in Austrian capital Vienna.
OPEC member states once again emphasized on their full adherence to the resolution adopted by OPEC in Nov. 2016.
