From the Field
Iran: OPEC unlikely to cut output
KUALA LUMPUR, May 18, 2015 – Iran’s deputy oil minister has said that OPEC is unlikely to implement a production cut at the organisation’s next meeting, Reuters news agency reported on Monday.
Asked if a production cut was likely to be outcome of the meeting on June 5, minister Rokneddin Javadi said “I don’t think so.”
Both Iran and Venezuela have repeatedly called for OPEC to cut output in order strengthen low oil prices. The minister’s comments indicate an admission that the group is unlikely to agree on a cut in output.
In November 2014, OPEC decided to maintain output in a bid to ensure US shale oil producers would be forced to cut production first. Saudi Arabia was seen as a key driver behind the decision.
Javadi said Iran is hoping the country will be able to achieve export levels of crude oil similar to those it had before sanctions. Since 2012, Iranian oil exports have more than halved to about one million barrels of oil per day.