Iran said that Venezuela and Iraq will join it, blocking a proposal to increase production at OPEC meeting+ this week. It is reported Bloomberg.
The world’s largest oil producers will meet June 22-23 in Vienna, where he will discuss whether to increase production or to keep limiting production.
The forthcoming meeting of OPEC members and oil producers outside the cartel may be one of the most difficult in recent years due to the different interests and requirements of the participants. Russian energy Minister Alexander Novak said that Russia and Saudi Arabia agreed on the indefinite extension of the transaction OPEC+.
“Three of the founders of OPEC are going to stop it, – said the representative of Iran in OPEC Hussain Kazempour Ardebili in an interview with Bloomberg on Sunday. – If Saudi Arabia and Russia want to increase production, it will require unanimity. If these two countries want to go it alone, it would be a violation of the cooperation agreement”.
While Saudi Arabia and Russia have standby power, many OPEC countries, including Iran and Venezuela, it will be difficult to increase production, even if their quotas will be increased.
OPEC and its allies would consider increasing production by 1.5 million barrels a day (b/d), said Thursday the Minister of energy of the Russian Federation. That would be enough to compensate for the loss of supply from Venezuela and Iran, projected by the International energy Agency (IEA). Saudi Arabia discusses various scenarios that will allow to increase production by 0.5-1 million b/d, said Bloomberg sources familiar with the situation.
Meanwhile, the US President, Donald trump continues to criticize OPEC in his Twitter account. Worrying about the impact of gasoline prices on the mid-term elections, the administration trump aggressively lobbying to increase production.
“We urge our brothers in OPEC and Russia do not condone Trump, who applies sanctions against the two founders of OPEC, but also Russia, – said Kazempour Ardebili. On the market adequate supply, and OPEC should stick to its decision to limit the to the end of the year.”
As reported “Vesti.Economy” last week, the IEA stated that oil demand will continue to grow in 2019 due to the stability of the global economy, but the world may be faced with a large deficit of oil by the end of next year.
Iran and Venezuela could lose almost 30% of its oil production next year, which will require additional supply from other OPEC members, has warned.
