06 September 2017, Sweetcrude, Lagos — A member of the Organisation of the Petroleum Exporting Countries, OPEC, Iran, has hit back at the U.S International Energy Agency, IEA’s statement that OPEC is failing in its compliance with the deal, saying the group has been consistent with its obligations.
A statement by Iran’s state-owned company, National Iranian Oil Company on Wednesday, attributed to its oil minister, Bijan Zanganeh, disclosed that the oil market is now balanced as a result of steady compliance with the pact.
OPEC agreed to curb its collective oil production by about 1.2 million b/d, while Russia and some other non-OPEC producers are cutting a further 600,000 b/d until March 2018.
“I think the oil market is balanced. OPEC members’ compliance with output cuts has not fallen in the last six months; it has increased,” Bijan Zanganeh said.
Zanganeh’s statement came following that of the International Energy Agency, IEA in July.
According to the IEA, OPEC’s compliance with production cuts fell in June to its lowest levels in six months as several members pumped much more oil than allowed by the OPEC/non OPEC supply deal, thus delaying a market rebalancing in supply and demand.
However, in August, the IEA said the world’s oil demand would grow more than expected this year, helping to ease the glut in supply.
According to Zanganeh, the OPEC agreement on output cuts would continue until the end of the Iranian year in March 2018 and that ‘there are talks underway to extend it but they are not official yet.’
However, before a meeting in Tehran with Brazil’s Minister of Mines and Energy Fernando Coelho Filho, Iran’s oil minister stated that Brazil, a non-OPEC member, should join the pact.
“It is improbable that Brazil joins the output cut under current conditions.”
He added that other non-OPEC members, especially Russia, have co-operated well with OPEC in cutting oil production.