Iran and Iraq have agreed to adopt a unified stance on Opec production levels when the group meets next week, Iranian media reported over the weekend. According to oil ministry website Shana, Iranian Oil Minister Rostam Qasemi will argue that members should stick to Opec's official production ceiling. Iranian Press TV said Iraqi and Iranian energy officials agreed all Opec members should observe their production quotas.
The group agreed an overall production ceiling of 30 million barrels when they last met in December but they did not set individual country quotas and sole swing producer Saudi Arabia has been pumping as much as it sees fit ever since. In May, a Reuters survey found Saudi Arabia was pumping 10.1 million barrels a day, the highest level in decades. There was no sign of its Gulf allies Kuwait and United Arab Emirates curbing their supplies.
"Although it is interesting the two countries that see their production moving in dramatically different directions are collaborating, the reality is that Opec production targets are not binding for either Iran or Iraq," analysts at J.P. Morgan in New York said in a note on Monday.
Comments
Comments are closed.