Iran gives blessing to OPEC cut extension and OPEC+ charter

Iranian oil minister Bijan Zanganeh says the production cut deal as well as the OPEC+ Charter of Cooperation have been approved by Tehran that has been exempted from the cuts.

3 July 2019
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Iranian oil minister Bijan Zanganeh says the production cut deal as well as the OPEC+ Charter of Cooperation have been approved by Tehran that has been exempted from the cuts.

Iranian Oil Minister Bijan Zanganeh talks to media in Vienna on Tuesday. IRNA

Iran has given its blessing to the OPEC production cut extension as well as the OPEC+ Charter of Cooperation that formally welcomes Russia, Kazakhstan, Mexico and others into the organisation.

“The resolution to extend production reduction of 1,2 million barrels per day (mbpd) as well as OPEC and Non-OPEC Charter of Cooperation was agreed by Iran,” said Iran’s Petroleum Minister Bijan Zanganeh on Tuesday in Vienna.

The deal extends existing output cuts of 1.2 million barrels per day, or 1.2% of global demand, until December 2019 or March 2020.

Russia forays into OPEC
OPEC used to shift world oil markets with a single announcement. These days, the Saudi-led organization needs help from some key partners — most significantly Russia — to exert that kind of influence.

The expanded alliance, which also includes Kazakhstan, Mexico and other nations, is known as "OPEC+." And on Monday and Tuesday, OPEC+ made its unofficial expansion a little more official, according to National Public Radio (NPR).

Member and non-member states have agreed on a "Charter of Cooperation" to formalize their relationship, pending approval from individual governments.

Khalid Al-Falih, the Saudi oil minister, called the move "historic."

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