Iranian Oil Minister, Bijan Zanganeh, said that OPEC members are considering further oil output cuts but should wait until the effect of the current reduced level of production is made clear. Zanganeh said “We are in discussions with OPEC members to prepare ourselves for a new decision,” according to Reuters.
“But making decisions in this organisation is very difficult because any decision will mean production cuts for the members”, the minister added. The reason for the discussion is an increase in the levels of US production which OPEC members had not predicted, Business Standard informed.
In related news, Iran’s oil exports to the West surged in May to their highest level since the lifting of sanctions in early 2016 and almost caught up with volumes exported to Asia.
Iran, which used to be OPEC’s second biggest oil exporter, has been raising output since 2016 to recoup market share lost to regional rivals including Saudi Arabia and Iraq.