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OPEC members to meet in Iran to decide fate of global oil deal
Posted on: 17/Feb/2016 11:40:27 AM
OPEC members who assemble in Iran on Wednesday will decide the fate of the first global oil deal in 15 years. They hope to persuade Iran to participate in a deal to freeze output levels. Saudi Arabia and Russia agreed to freeze production levels on Tuesday. Nadu Arabia in a dominant OPEC power and Russia is a no OPEC country. They are the world`s top two producers and exporters of oil. Although they have agreed to the freezing output, they say that the deal was contingent on others joining in.
Qatar, Venezuela and Kuwait, who are all OPEC members, are also ready to freeze output and oil sources.
Iran, on the other hand, has said that it will steeply increase output in the coming months. It says that it seeks to regain lost market share after years of international sanctions. The sanctions were lifted in January.
A source in Iran says, Our situation is totally different to those countries that have been producing at high levels for the past few years. It requires discussion and examination to be seen what has been their point. What is important is that, first, the market is oversupplied, and, second, that Iran will not overlook its quota.
Non Iranian sources have said, Iran may be offered special terms as part of the output freeze deal. Iran is returning to the market and needs to be given a special chance but it also needs to make some calculations.
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