The Organization of the Petroleum Exporting Countries (OPEC) is unlikely to cut output, the Iranian oil minister said Monday, despite criticism that low oil prices are tanking economies, Reuters reported.
Saudi Arabia, the authority on OPEC, has faced complaints that the country's refusal to cut down oil supply is jeopardizing prices, a move that has affected several nations, including Iran and Venezuela, whose economies rely almost solely on oil profits.
Asked if OPEC would cut down its output at its next meeting in June, Iran's Deputy Oil Minister Rokneddin Javadi told Reuters, "I don't think so."
Saudi Arabia has been reluctant to cut supply since its current strategy is for OPEC to regain market share, holding out and hoping US oil shale companies would be forced to cut its output first.
Javadi said Iran was still likely to push for the reduction at the next meeting despite his low expectations. The meeting has the potential to "reinforce cooperation between the members because OPEC is an organization that could make policies for oil price orientation," Javadi told reporters at a conference in Kuala Lumpur.
The potential nuclear deal is also a gamechanger for Iran's oil exports. Javadi said he expects the country's oil exports to regain its momentum pre-sanctions once the agreement is finalized.
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