Al-Falih against exempting Iran from oil output cuts

Economy 12/6/2018, 11:06 AM
Al-Falih against exempting Iran from oil output cuts

Saudi Arabia's Energy Minister Khalid al-Falih stated on Thursday that he is against exempting Iran from a potential OPEC+ output cut agreement. He added that the Organization of the Petroleum Exporting Countries (OPEC) and other major oil producers are still considering all options, including giving up on reducing production.

According to Al-Falih, OPEC+ cutting crude output by 1 million barrels per day would be enough to stabilize the oil market. However, the Saudi official insisted that a deal will not be reached unless all OPEC members and non-OPEC producers participating in the meeting are "on board" with the proposed cuts. If any country refuses to decrease its production now, other exporters will wait until everyone agrees to adopt output cuts.

On Wednesday, Oman's Oil Minister Mohammed bin Hamad al-Rumhi claimed a tentative agreement on reduced production was reached among the OPEC+ Joint Ministerial Monitoring Committee. The agreement was brought into question after Iranian Petroleum Minister Bijan Zanganeh said the country plans to ask to be excluded from the proposed cuts until United States sanctions against Tehran are lifted.

Breaking the News / NP