29-06-2018

OPEC run by unanimous decision, not Saudi Arabia, says Kazempour

Iran’s OPEC governor has warned Saudi Arabia to stick to the terms of its deal rubber-stamped on June 23 and refrain from exceeding its allocated output quota.

“If Saudi pumps above its allocated quota it is in breach of the contract with OPEC,” Hossein Kazempour Ardebili told S&P Global Platts in a telephone interview Wednesday.

His comments come just days after Iran agreed to a deal with its OPEC partners and allies outside the group led by Russia to reduce overcompliance to cuts, effectively releasing more crude to the market.

“OPEC is run by unanimous decision not one country,” he added.

OPEC’s meetings last week were complicated by a deep political rift between Tehran and the kingdom, which has come under pressure from US President Donald Trump to pump more oil following the re-imposition of sanctions on Iran.

Kazempour said OPEC’s President Mohammed Barkindo could face the choice of calling an extraordinary meeting of the group if the agreement was found to have been breached when its monitoring committee next meets September 22-23 in Algiers to review progress.

He added that Saudi Arabia was “not mandated” to increase output beyond their agreement. Saudi Arabia’s quota under the deal is 10.06 million b/d.

OPEC and its allies agreed to adjust individual oil production caps according to each member’s ability to pump more crude under their plan to add up to 1 million b/d of supply, Saudi energy minister Khalid al-Falih said last Saturday following days of tense meetings in Vienna.

Saudi officials did not immediately respond to requests for comment.

Source: Platts

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