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Iran agrees to OPEC oil cut

December 7, 2018 at 2:19 pm

OPEC building [Zamoto Media/Facebook]

Iran gave OPEC the green light today to reduce oil output by around 0.8 million barrels per day from 2019 after finding a compromise with rival Saudi Arabia over a possible exemption from the cuts, an OPEC source said.

Tehran has emerged as a key sticking point for a deal but sources said the difficulties were now in the past and OPEC was refocusing on talks with non-member producers led by Russia to reduce supplies and prop up oil prices.

“Yes, Iran agreed in principle,” the source said.

OPEC will propose that non-member producers contribute an additional 0.4 million bpd to the cuts, the source said. “It will be stamped when the non-OPEC meeting is done.”

 Minister: Iran will not discuss OPEC quota while under US sanctions

The Organisation of the Petroleum Exporting Countries was meeting in Vienna for a second day running, before discussions with its non-OPEC allies scheduled for 1400 GMT.

Saudi Arabia faces pressure from US President Donald Trump to help the global economy by refraining from cutting supplies.

An OPEC output reduction also would provide support to Iran by increasing the price of oil.

Earlier this week, Iranian Oil Minister Iran Bijan Zanganeh said Tehran would not discuss its production quota in OPEC as long as US sanctions are imposed on it.

The US imposed sanctions on Iran in November to curb it’s nuclear programme, the Trump administration alleged, in a move which was heavily criticised and rejected by the international community.

Saudi energy minister meets US Iran envoy ahead of OPEC