VIENNA- Iran has signaled on Wednesday they will compromise on a small increase in Organisation of the Petroleum Exporting Countries (OPEC) oil output, as Sauid Arabia scrambles to convince fellow members of the need for a larger rise in production.
OPEC will meet on Friday to decide output policy, as huge oil consumers such as the United States and China for them to decrease their oil prices and support the global economy in rather producing more crude oil. ‘
Iran said on Tuesday that a deal was unlikely with OPEC, which meant a clash between Saudi Arabia and non-member Russia who are pushing to raise production steeply from July to meet growing global demand.
However they changed their tune on Wednesday, when Iranian Oil Minister Bijan Zanganeh said OPEC members had over delivered on cuts in recent months should comply with agreed quotas.
This means it would boost producers such as Saudi Arabia which has been cutting more deeply than it planned despite production outages unstable countries such as Venezuela and Libya, where the economies have fallen due to political crises.
OPEC source who is aware of Iran’s stance, said, “OPEC could keep the same deal with compliance going back to 100%.”
Photo Credit- EWN