Iran says OPEC oil deal likely be extended

Business Materials 17 April 2017 17:56 (UTC +04:00)

Baku, Azerbaijan, Apr. 17

By Dalga Khatinoglu – Trend:

Iranian Oil Minister Bijan Namdar Zanganeh said that there are signs from OPEC members that the Cartel wants to keep global oil market stable.

“The events show that the OPEC oil cut deal would likely be extended,” he told Fars news agency Apr.17.

Zanganeh said that the compliance of OPEC members to the deal has been improving month to month.

OEPC members reached an agreement Nov.30, 2016 to cut the oil output by 1.2 mb/d in 1H2017.

The compliance of members was 82 percent, 94 percent and 95 percent during first 3 months of the current year.

The members plan to discuss extending the deal in May for the second half of year.

Iran has been allowed to increase the oil output by 90,000 barrels per day (b/d) to 3.797 mb/d in 1H2017.

Iran’s oil output was 3.780 mb/d, 3.819 mb/d and 3.79 mb/d in the first three months of 2017, according to OPEC’s monthly reports. Therefore, Iran’s average output stood at 3.796 mb/d in 1Q2017, a little below its allowed production level and its compliance was 100 percent.

Eleven Non-OPEC oil producers also obliged to cut 558,000 b/d of oil output in 1H2017. There are no confirmed statistics about their compliance, but international energy entities have put their compliance level at above 60 percent.

OPEC produced 32.009 mb/d of oil in 1Q2017, about 1.133 mb/d less than 4Q2016.