Iran crucial for OPEC production cut deal

Reportedly, the two oil chiefs discussed recent oil market developments, and economic and geopolitical uncertainties facing the market. The talks also touched upon the future of climate change negotiations and the UN’s Paris Agreement, following the recently concluded COP22 in Marrakesh.

According to a statement by OPEC, Zanganeh pledged continued support for the implementation of the Algiers Accord and stated that he remains confident that an all-inclusive agreement can be reached during the upcoming OPEC Ministerial Meeting to be held in Vienna on November 30, 2016.

To remind OPEC in September in Algeria agreed to reduce oil production, aiming to stabilize oil prices, the first such deal in eight years. The Algerian deal calls for OPEC to keep the production at 32.3 and 33 million barrels per day.

Following the meeting Iranian Minister of Petroleum Bijan Zangeneh said: “It is highly probable that oil and energy ministers of the member countries of Organization of Petroleum Exporting Countries (OPEC) will reach an agreement in the November 30 meeting.”

In his remarks during the visit to Iran, the OPEC Secretary General acknowledged the flexibility and accommodation already shown by Iran in reaching the Ministerial decision of September 28.

He also added that he looked forward to Minister Zanganeh’s continuing leadership – not only by contributing to the consensus needed for implementation of the Algiers Accord but also by actively working with his counterparts from other OPEC Member Countries in that regard.

“The participation of Iran in the implementation of the Accord is crucial and I remain optimistic,” said the Secretary-General.

The OPEC Secretary-General further acknowledged the rapidly changing dynamics in the political economy of the world with the attendant impacts on the oil market. He also stressed the need for cohesive action by OPEC in collaboration with non-OPEC producers in the spirit of “equity, fairness, and transparency.”

OPEC says the meeting in Tehran is the latest of a series of consultations that HE Mohammad Barkindo has been having with officials from OPEC Member Countries in his bid to ensure that OPEC meeting in Vienna,“will be able to execute the Algiers agreement.”

Supported by the approaching OPEC meeting, oil prices climbed some 1 percent on Monday.

Brent crude futures LCOc1 were trading at $47.31 per barrel at 0743 GMT, up 65 cents, or 0.96 percent, from their last settlement.

U.S. West Texas Intermediate (WTI) CLc1 was up 0.9 percent, or 41 cents, at $46.10 a barrel.

“Crude oil will continue to be driven by headlines as the 30 November meeting regarding production cuts draws closer,” Reuters quoted ANZ bank as saying.

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