Iran urged Russia and Saudi Arabia to cut oil production

© RIA Novosti / Evgeny to Odinakovymi in votebanned produced at oil and gas condensate field named after Vladimir Filanovsky in the Northern part of the Caspian seaIran urged Russia and Saudi Arabia to cut oil production© RIA Novosti / Evgeny to Odinakovymi the image Bank

Russia and Saudi Arabia should cut oil production by at least 1 million barrels per day, since the growth of oil production in these countries brought the market of «black gold» out of balance, said the delegate of Iran in OPEC Hossein Kazempour Ardebili.

«They both have to reduce (oil — ed.)… at Least they should cut 1 million barrels per day, otherwise no one will consider this,» said Kazempour in interview to Agency Bloomberg.

According to them, Russia and Saudi Arabia are now forced to reduce production because their plan to change the course of the transaction for the reduction of oil production have failed. «They took the market out of balance. Saudi Arabia and Russia have increased production, and prices fell by $ 15 per barrel,» he said.

In his opinion, the fall in prices has hit small producers in the Alliance who have not been able to increase oil production to the same extent as Russia and Saudi Arabia. These States may now be unwilling to participate in joint efforts to reduce oil production, he said.

OPEC and several non-organisation countries (OPEC+) agreed in late 2016 in Vienna on the reduction of oil production to 1.8 million barrels per day from the level of October 2016, of which 300 thousand were in Russia. The contract started from the beginning of 2017 and has been extended until the end of 2018. In June 2018 OPEC+ agreed goal is to escape from the fulfillment of the terms of the agreement, which then accounted for 47%.

Earlier on Wednesday, Bloomberg, citing unnamed OPEC delegates, said that the OPEC at the meeting of the Ministerial monitoring Committee on 11 November in Abu Dhabi will discuss the options of actions of the Alliance for 2019, one of which is the possibility of reducing oil production. And last week, on 31 October, the Minister of energy of Saudi Arabia Khalid al-falih stated that OPEC+ hopes in December to sign an agreement on permanent cooperation, then the country will be able to establish new indicators of oil production by 2019.