Iran says quotas consensus at OPEC meeting unlikely

Oil&Gas Materials 28 November 2015 14:21 (UTC +04:00)

Tehran, Iran, November 28

By Mehdi Sepahvand - Trend:

Iran's Oil Minister Bijan Zanganeh believes it is unlikely to reach a consensus over quotas in the upcoming OPEC meeting.

He made the remarks on the sidelines of the Tehran Conference which is held by the Oil Ministry to unveil Iran petroleum contracts (IPC), a new form of oil contracts introduced by Iran.

Some of the world's biggest names in oil, gas, and petrochemicals industries gathered in Tehran Nov. 28 to attend the conference, during which Iran's Oil Ministry unveiled its IPC model contracts. Over 300 companies attended the event.

Pointing to Iran's prospective oil export increase, Zanganeh said that although OPEC general consensus among members is needed to decide on quotas, it is unlikely to reach a consensus, Trend correspondent reported November 28.

Before, Zanganeh told IRNA 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.

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.