Despite Iran’s pledge to increase its oil’s production to regain its share of the market, no agreement was reached by the international organization.
Last Friday, on a briefing carried out in Vienna, OPEC members couldn’t reach any agreement in regards to an output ceiling considering Iran’s boost of its production once the sanctions over its economic and energy sector are withdrawn as a result of the deal signed on July this same year regarding its nuclear program.
Nowadays the world is producing more oil than it consumes and it’s also running out of capacity to store the excess.
Abdullah al-Badri, OPEC’s secretary general, said the organization couldn’t agree on any figures because it could not predict how much oil Iran would add to the market next year. He also added that a growing global demand is expected to absorb a probable rise in Iranian production next year.
Earlier in the meeting, it was being debated to raise the collective ceiling, excluding new member Indonesia, to 31.5 million bpd (barrels per day) from the previous 30 million – effectively bringing it in line with real production numbers, but in the end, no agreement was reached.
The last time OPEC failed to reach a deal was in 2011 when Saudi Arabia was pushing the group to increase output to avoid a price spike amid a Libyan uprising.
Written by Lisbeth Mechter