Zangeneh: Latest OPEC statement confirms October 2016 decisions

SHANA – Iranian Minister of Petroleum Bijan Zangeneh said the 174th statement of the Organization of the Petroleum Exporting Countries (OPEC) confirms the body’s decision on production policy back in October 2016.

“What was decided at the 174th OPEC General Meeting is the same the October 2016 decisions,” said the official, according to the Iranian parliament’s website, ICANA.

Bijan Zangeneh, referring to the recent meeting of members of the Organization of the Petroleum Exporting Countries (OPEC), said the statement published at OPEC website includes members’ production quota and puts the ceiling of production reduction to the level decided in October 2016 at 1.2 million barrels per day.

He said OPEC output was roughly 780,000 barrels/day below the agreed levels in May, adding, “Contrary to what some [members] say about an increase of 800,000 barrels to OPEC production, there are no figures in this statement.”

“Some countries want to give positive signals to the market or the US, which is not related to the OPEC statement, and the basis for action is the resolution signed by all 14 members,” he said.

Stating that Iran’s proposal about the group’s production policy was endorsed by OPEC in the 174th meeting in Vienna, adding, “Iran’s suggestion was to first correct the volume of supplied oil in the market, secure members’ 100 percent compliance to the agreement, and then in next meetings, decide on a production increase if needed,” Mr. Zangeneh said.

He stressed that the OPEC statement was very clear, adding Iran would follow up on implementation of the resolution and “if a country has a different interpretation of this agreement, Iran will officially raise it to OPEC.”

“Russia’s justification for increasing production was that it was under the pressure of domestic companies because the prices of products in the country increased and that the Russian people were dissatisfied with the situation,” he said.