Zangeneh hails OPEC's crucial decision

EghtesadOnline: Minister of Petroleum Bijan Zangeneh said on Thursday that OPEC members showed that despite rivalry and harsh political differences, they can cooperate and have engagement.

News ID: ۷۷۱۸۳۳

03 December 2016

Talking to TV after participation in the 171st OPEC meeting, Zangeneh said oil prices will stand above 50 dollars a barrel in light of cooperation on the non-OPEC side.
He noted that the OPEC had in its November 30 meeting made a major decision, showing its livelihood, according to IRNA.
The minister said, 'OPEC has been passive in the market for more than two years and certain groups claimed it is no longer alive.'
The official went on to say OPEC session in Algeria showed that the organization is alive and per the decision, OPEC output was to reach 32.5 million barrels per day, which is in fact OPEC decision in its 171st meeting.
The November 30 session, however, specified share of each country in the cut, according to the minister.
Zangeneh said the OPEC members will hence cut their production by 1.2 million barrels per day, thus bringing the OPEC output to 32.5 million barrels per day. All countries, excluding Iran, will have to cut 4.5 percent of their reference production level, which is the October output, added the minister.
OPEC in its 171st ordinary meeting on Wednesday, November 30, agreed to Iran's share of 3.9 million barrels per day in its total output.
The petroleum ministers of the Organization of the Petroleum Exporting Countries (OPEC) have agreed to cut 1.2 million barrels a day from the Organization's present output.
The OPEC in its 171st ordinary meeting on Wednesday, November 30, reached the agreement for the first ever since 2008 to decrease its production, hence being able to implement the Algiers accord of September 28.
Based on the Algiers accord, the Organization was to minimize the production level to 32.5 million barrels per day to 33 million barrels per day.
The minus politicized OPEC decision proves that under difficult conditions important decisions still can be made and play a major role in the world energy market.
Predictions show that following the OPEC decision, oil price will reach 50 to 55 dollars a barrel.
Minister of Petroleum Bijan Zangeneh had prior to the OPEC session announced, 'If economic spirit governs the meeting of the oil and energy ministers of OPEC, we will reach decision very soon; however, if politics are to be involved, the decision making will be times very difficult.'
Per OPEC agreement on Wednesday, Saudi Arabia will cut its production by 500,000 barrels per day to the level of 10.6 million barrels per day.
Reuters puts Saudis' output in October at 10.549 million barrels per day.