OPEC, Non-OPEC States Signal Support for Output Cuts: Iranian Minister

TEHRAN (Tasnim) – Iranian Oil Minister Bijan Namdar Zanganeh said OPEC and non-OPEC member states have indicated their support for extending a crucial agreement by world’s biggest producers to cut outputs.

OPEC, Non-OPEC States Signal Support for Output Cuts: Iranian Minister

"During these last days we received a positive signal from OPEC members and non-OPEC contributors in this agreement for cutting the production for extending this agreement for the second half of 2017," Zanganeh told reporters on Saturday, according to Reuters.

In December 2016, the Organization of the Petroleum Exporting Countries (OPEC) reached a landmark agreement with Russia and other non-members to proceed with the plan and slash oil production by nearly 1.8 million barrels a day for six months starting January 2017.

The agreement exempted key member Iran from the plan, allowing it to increase its production by 90,000 bpd to reach pre-sanction levels of around 4 million bpd.

Nigeria and Libya were also exempted from the planned output cut due to internal conflicts which have already decreased their crude production.

The Iranian oil minister further said that the US is mounting political pressure on international oil companies to dissuade them from investing in Iran's energy sector.

With 137.6 billion barrels of proven reserves, Iran has the world's fourth largest crude deposits. In terms of gas reserves, according to the 64th edition of the BP Statistical Review of World Energy released in June 2015, Iran is the world's top gas reserves holder with 33.8 trillion cubic meters.

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