Iran Press/Iran News: Bijan Namdar Zanganeh said the decision made during the OPEC Plus meeting today (Sunday) would not increase oil prices; adding high prices will not work to the group’s advantage in the long term.
Zangeneh made the remark after the 19th OPEC and non-OPEC Ministerial Meeting, stating that the OPEC and non-OPEC oil producers, known as OPEC+ members, decided to bring 400,000 bpd of crude oil back to the market monthly to December 2022.
The production baseline was changed for some countries, he said. "They agreed to add 5.8 million bpd of crude oil to the market within 15 months and hold the meetings monthly to see market developments."
He stressed Iran’s return to the market would affect all these, and OPEC+ cannot ignore Iran’s return.
On the effect of today’s meeting on the oil market, Zangeneh said it would not increase prices, and no demand-supply imbalance will occur.
We need to bring the oil cuts back to the market as there are positive signs of economic recovery in the world, he added.
The meeting noted the ongoing strengthening of market fundamentals, with oil demand showing clear signs of improvement and Organisation for Economic Co-operation and Development (OECD) stocks falling, as the economic recovery continued in most parts of the world with the help of accelerating vaccination programs.
The meeting also welcomed the positive performance of Participating Countries in the Declaration of Cooperation (DoC). Overall conformity to the production adjustments was 113% in June (including Mexico), reinforcing the trend of high conformity by Participating Countries.
The 19th OPEC and non-OPEC Ministerial Meeting, which was held via video conference on Sunday, July 18, 2021, under the Chairmanship of Prince Abdul Aziz bin Salman, Saudi Arabia’s Minister of Energy, and Co-Chair Alexander Novak, Russia’s Deputy Prime Minister wrapped up while ago.
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