Zanganeh: OPEC Makes Exceptional Decision

“Today, an exceptional decision was made at OPEC,” Zanganeh told reporters after end of the OPEC consultative session, while voicing pleasure with the outcome.

He said after two years and half, OPEC reached consensus on market management.

He added that on the proposal of the OPEC secretariat, the OPEC oil and energy ministers had decided to fix their production to the ceiling of 32.5 to 33 million barrels per day and the level should be divided among the members.

He noted that the OPEC Secretariat will propose output quota of the states on consultation with the members.

He asserted that OPEC Secretariat will also continue consultation with the non-OPEC states to stabilize oil market.

A high-level specialized committee, comprising the OPEC members, will be formed and it will offer its proposal to the next meeting of the OPEC members regarding the output level of the members, said Zanganeh, adding that the committee will also continue consultation with the non-OPEC members to bring about stability in the oil market.

On the OPEC decision in the Algeria consultative meeting, Zanganeh said, “In my opinion, it was a pleasant and very important decision OPEC made after two and half years for market management. Already, OPEC was not ready to make any decision. Despite all the tensions insinuated or sometimes brought about among the members, the decision served as a good prelude for OPEC role.”

He said under very difficult conditions, OPEC showed that it can be united, powerful and firm and “Today, I am very happy over that, considering it as a big step forward for OPEC future.”

On prolongation of the OPEC consultative meeting in Algeria, Zanganeh said many discussions were held and then the consultative meeting turned into extraordinary meeting of the OPEC members and decisions in the session were then more credited.

Zanganeh said head of the conference and the OPEC Secretary General will hold a press conference to declare outcome the OPEC decisions.

Speaking prior to the OPEC consultative meeting, Zanganeh said Algeria talks are preparatory to agreement.

He said agreement between all the OPEC members and certain non-OPEC members is the requisite for overcoming problems.

He said growth in the demand and fall in the oil reserves in the markets in the last three months of the current Christian year and the first three months of 2017, will prepare the ground for promotion of prices in the market.

“We expect OPEC members to support Iran’s return to the oil market and its gaining the output quota after elimination of the international sanctions.”

Current OPEC president Qatari minister Mohammed al-Sada  told the inaugural session of the OPEC consultative meeting that OPEC members are in consensus on the need to make efforts to stabilization of the world crude markets and lower

oil price fluctuations. 

Meanwhile, Reuters quoted two OPEC sources as saying that OPEC energy and petroleum ministers had in their consultative meeting in Algeria on Wednesday decided to limit OPEC output to the level of 32.5 million bpd.

Reuters said now, 14 OPEC members produce 33.24 million bpd crude. 

An OPEC source told Reuters that OPEC members will agree concrete levels of production by each country at its next formal meeting in November.

OPEC agreed on Wednesday to reduce its oil output to 32.5 million bpd from the current production levels of around 33.24 million bpd, two OPEC sources told Reuters.

One source also said that OPEC will decide the output level of each of the members in the regular November meeting in Vienna, Austria. 

The 170th regular session of the OPEC petroleum and energy ministers will be held in Vienna, Austria, on November 30 to survey developments in the crude market as 14 members will be present there.