Iran will veto output grow when OPEC meets TEHRAN (NIOC) _ Iran will veto an anticipated proposal by Saudi Arabia and Russia to increase global production of oil when major producers meet in Vienna on Wednesday, stressing that it will have Iraq and Venezuela by its side to block the move, Press TV reported.
Hossein Kazempour Ardebili, Iran’s ambassador to the Organization of the Petroleum Exporting Countries (OPEC), said that any increase in current production levels would be against a deal that OPEC and non-OPEC producers reached in 2016.
“Three OPEC founders are going to stop it,” Kazempour Ardebili said. “If the Kingdom of Saudi Arabia and Russia want to increase production, this requires unanimity. If the two want to act alone, that’s a breach of the cooperation agreement.”
Russia’s Energy Minister Alexander Novak said over the weekend that a proposal had been discussed with Saudi Arabia to ask OPEC to increase production by 1.5 million barrels a day (bpd) in the third quarter of 2018.
"We are only proposing this for the third quarter. In September, we will review the situation in the market and decide the future course," he said.
Novak added that the proposal had been raised during the last week meeting of Saudi Prince Mohammad bin Salman with Russia’s President Vladimir Putin in Moscow.
OPEC and Russia decided together in 2016 to cut their supply in order to push prices up following a crash induced by a global crude production glut.