OPEC+ must not ignore Iran's oil return to global market: Oil minister

The world's leading oil producers agreed on Sunday to continue to modestly boost output from August, after the United Arab Emirates had blocked a deal earlier this month.

Zanganeh said that the 18th session was procrastinated due to the UAE opposition 20 days ago, IRNA reported.

With the change in the basis of production, we have made an agreement upon which OPEC+ will increase production by 40,000 barrels per month, added the minister.

A total of 5.8 million barrels will be added to oil production in the coming 15 months, he further noted.

OPEC+ should return the amount of production it had reduced to the market, and this will happen considering the growth of the global economy, Zanganeh said.

He reiterated that Iran's return to the global oil market is important and effective and the OPEC+ cannot ignore Iran's return.

Oil prices, which had already been sliding owing to concerns about the global economy, plummeted in April 2020 as coronavirus spread around the world and battered global consumption, transport and supply chains.

OPEC+ last year decided to withdraw 9.7 million barrels per day from the market and to gradually restore supplies by the end of April 2022. Benchmark oil prices rebounded as a result.

Economic rivalry is at the heart of the feud between OPEC members as the Persian Gulf states try to cash in on their vast oil reserves as they face the beginning of the end of the oil era.

Disagreements between Saudi Arabia and UAE – once inseparable allies – are usually resolved behind palace walls and rarely spill into the open.

Source: Iran Daily