Revival of OPEC quotas – very difficult task, says Iranian minister
Baku, Azerbaijan, Nov. 27
By Dalga Khatinoglu - Trend:
The elimination of the OPEC oil quota system is a grave and historical mistake, Iran's Oil Minister Bijan Zangeneh told IRNA news agency.
He noted on Nov .27 that the revival of a quota system in the upcoming Organization of Oil Exporting Countries (OPEC) meeting on Dec.4 is a very difficult task.
OPEC members have agreed on 30 mb/d ceiling level together. However, there is no a binding production quota for each member of OPEC.
OPEC discontinued quotas in 2011 because they caused friction and member countries were not complying with them anyway.
The cartel's latest monthly report said that OPEC's output stood at 31.383 mb/d in October, or 256,500 barrels less than in September.
However, OPEC's report said that the estimated demand for OPEC crude in 2015 remains at 29.6 mb/d, an increase of 0.6 mb/d over the previous year. The demand for OPEC crude is forecast at 30.8 mb/d in 2016, or around 1.2 mb/d higher than in 2015.
Zanganeh said that some OPEC members have raised the issue of eliminating quota system, but it is not possible to do that without approval, he said.