The Iranian oil minister has stated that a deal on oil output at the June 22 OPEC meeting in Vienna is unlikely, setting the stage for a clash with Russia and Saudi Arabia, who are pushing to curb the current production cuts, Reuters reported.
Riyadh and Moscow have proposed an increase in production amid calls from US President Donald Trump and China to meet global demand and cool prices.
OPEC members Iran, Iraq, Venezuela and Algeria have all expressed opposition to such a move.
“I don’t believe at this meeting we can reach agreement. OPEC is not the organization to receive instruction from President Trump … OPEC is not part of the Department of Energy of the United States,” Iran’s oil minister Bijan Zanganeh told reporters in Vienna.
Zanganeh said he would not attend OPEC’s talks with non-OPEC producers, also scheduled for June 22, adding that the recent rise in oil prices was due to Washington imposed sanctions on both Iran and Venezuela.
“Oil demand usually grows at the steepest pace in the third quarter … We could face a deficit if we don’t take measures,” Russian energy minister Alexander Novak said on June 19.
“In our view, this could lead to market overheating.”
Novak stated that Russia wants the coalition of OPEC and non-OPEC producers to raise production by 1.5 million barrels per day, almost eliminating the OPEC-sanctioned cuts of 1.8 million b/d in place since January 2017.