Iran: OPEC should stick to its production limits

Iran: OPEC should stick to its production limits

Iran has edged away from a threat to veto any agreement that would raise output, while Saudi Arabia has put forward a plan that would add 600,000 barrels a day - about 0.5 percent of global supply - smaller than the 1.5 million increase Russian Federation proposed.

Iran, OPEC's third-largest producer, had demanded OPEC reject calls from Trump for an increase in oil supply, arguing that he had contributed to a recent rise in prices by imposing sanctions on Iran and fellow member Venezuela.

Saudi Arabia's oil minister said the OPEC ministers will discuss a proposal to increase output by about 1 million barrels per day. Assuming that the main production continues, that will continue to drive inventories down, we think that that would be, you know, probably too short of a supply situation, that we can not allow to happen.

That would effectively mean a modest boost from producers such as Saudi Arabia that have been cutting more deeply than planned despite production outages in Venezuela and Libya.

Iraqi Oil Minister Jabar al-Luaibi said on Wednesday he hoped there would be agreement when OPEC meets but added: "The oil market has not reached the level of stabilization".

OPEC members and independent producers began in early 2017 to cut oil production by 1.8 million barrels per day in a bid to restore stability to oil markets.

"Our customers have spoken loudly and we must listen to them", Al-Falih said before the ministerial talks on Thursday.

The intensive negotiations between ministers in Vienna this week are the culmination of a process that has whipsawed oil markets for weeks. "We are in for higher prices for longer", he said.

US shale oil production has helped offset some of OPEC's cutbacks since 2016.

Prince Louis' christening to be held at Chapel Royal on July 9
Add Royal Family as an interest to stay up to date on the latest Royal Family news, video, and analysis from ABC News. On Saturday, Prince Harry and Meghan Markle were spotted at Celia McCorquodale and George Woodhouse's nuptials.

Alli remains a doubt for Panama clash
Speaking to BBC One after the Tunisia win, Kane said: "We have shown resilience for a while now since the gaffer come in". Partly because of the dogged performance against Tunisia that was rewarded with a late victor from captain Harry Kane .

OPEC reaches deal to hike output - oil spikes nearly $2
Brent crude, the global oil benchmark, was down 1.6% on the day, at $73.54 a barrel, on London's Intercontinental Exchange. Also supporting prices was a drop in Libyan supplies due to the collapse of an estimated 400,000-barrel storage tank.

Meanwhile Riyadh, which cheered Washington's exit from the Iranian nuclear deal, is under pressure from its U.S. ally to open the spigots as Trump hopes for lower pump prices ahead of November's mid-term elections.

The preliminary accord allows for an additional 600,000 barrels a day of oil to flow onto the market, about 0.5 per cent of global supply, said a delegate.

He said now high oil prices dent the economic development of many countries.

Most analysts agree that the increases are necessary to offset the declines in Venezuela due to the economic turmoil, and the drop in Iranian exports because of USA sanctions.

Yergin said Saudi Arabia and the United Arab Emirates support the current, tougher US policy toward Iran, Saudi Arabia's rival for influence in the region, and so will want to support Trump's call for higher production and lower prices.

Iranian oil minister Bijan Namdar Zanganeh said as the group met Friday that "we are not here to receive instruction from President Trump and apply it and implement it".

Zanganeh said that Iran would try to maintain its export levels in the face of USA sanctions. That may seem insignificant in a global supply of 98 million barrels a day, but critically it would reverse reductions that the same countries approved in late 2016, helping push crude higher by more than 50 percent.

Zanganeh told CNN on Wednesday that if OPEC returned to regular compliance, the real supply increase from the group would constitute only around 460,000 bpd.

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