Overall, the cartels members pledged to cut production by some 1.2 million barrels per day (mbpd) from January onward. Several non-OPEC producers are joining the endeavor, with Russia and others adding some 0.6 mbpd to the cut.
Iranian officials have welcomed the outcome of long months of negotiations.Oil Minister Bijan Zanganeh praised how OPEC members managed to reach a deal despite many political differences and economic competition. Though repeatedly asked to cut production, Iran was able to negotiate an exemption, the minister noted.Iranian newspapers have enthusiastically celebrated the deal, with some outlets referring to it as a new Joint Comprehensive Plan of Action.
Iran will certainly benefit from the deal in several respects. Its reference production quota the base against which production cuts are measured has been set at just below 4.0 mbpd, which is effectively the level prior to the imposition of Western sanctions from 2011 onward.This figure reflects recognition of the fact that Iranian output in recent years, whichaccording to official numberswas at times as low as 3.1 mbpd due to sanctions, was a deviation from traditional levels. For Iran, whose officials have time and again argued that the sanctions were unfair,this exemption is of great symbolic importance, as fellow OPEC countries acknowledged what many in Tehran argue are Iran's traditional rights.Irans defiance appears to have paid off, especially in the face of political pressure by its archrival Saudi Arabia, which advocated for the production cut and called upon OPEC members including Iran to join in reducing output.
Read More Here
# Tags
Latest News
Most viewed
