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Iran’s oil minister warns Russia-Saudi alliance could kill OPEC

July 2, 2019 at 10:00 am

Iran’s Oil Minister Bijan Zanganeh said an alliance formed by Saudi Arabia and Russia could damage the Organisation of Petroleum Exporting Countries (OPEC).

The minister told reporters ahead of an OPEC meeting in the Austrian capital, Vienna, yesterday that Tehran has no problem with reducing global crude production, however, he explained that the main challenge to OPEC is “unilateralism”.

“Iran won’t leave OPEC but I believe OPEC is going to die. It’s going to die with these processes,” he explained.

During the weekend, Russian and Saudi officials met on the sidelines of the G20 summit in Osaka, Japan. They then announced their support for extending the global crude production cuts for another nine months.

READ: OPEC set for oil cut extension if Iran endorses pact

OPEC agreed yesterday to extend oil supply cuts until March 2020 as the group’s members overcame their differences in order to prop up the price of crude amid a weakening global economy and soaring US production.

Saudi Energy Minister Khalid Al-Falih said he was growing more positive about the global economy after a G20 meeting of world leaders over the weekend.

“The global economy in the second half of the year looks a lot better today than it did a week ago because of the agreement reached between President Trump and President Xi [Jinping] of China and the truce they have reached in their trade and the resumption of serious trade negotiations,” Al-Falih said.