Iran rebuffs Trump's call for OPEC to increase oil output | AP business

High oil prices hurting fiscal balance, says Pradhan

OPEC Works Toward Deal as Saudis Propose Plan for Higher Output - Article

Zanganeh has said the president is to blame for high prices because of his unilateral withdrawal from the global nuclear agreement and the imposition of fresh sanctions that could significantly curb Iran's crude exports.

OPEC has a history of hard meetings as well as clashes between Iran and Saudi Arabia.

Ministers from the Organization of the Petroleum Exporting Countries and non-OPEC nations led by Russian Federation are meeting Friday and Saturday in Vienna, and it could be a hard and uncomfortable gathering.

That means if a 1 million bpd output rise were agreed, OPEC would be allowed to increase output by around 650,000 bpd, of which Saudi Arabia could contribute over 200,000 bpd.

Tehran had bridled at complaints on Twitter by USA president Donald Trump that the cartel was artificially inflating oil prices, which touched $80 a barrel last month. Saudi Energy Minister Khalid al-Falih said today the world needed at least an extra 1m barrels per day to avoid a shortage in the second half of 2018.

Iraq's energy minister said it was clear that Opec and its allies would change course after 18 months of production curbs, in an effort to rebalance crude supply and demand. Oil traded as low as $27 in 2016.

Benchmark oil prices have already risen by around 70 percent over the previous year, which should help restrain consumption growth.

Iranian oil minister Bijan Zanganeh said in an exclusive interview on Wednesday that previously agreed limits on production remain the best way to balance global oil supply, demand and prices.

The prince, who is Saudi minister of state for energy affairs, was speaking at the OPEC seminar in Vienna, ahead of what is likely to be a hard meeting.

Ecuador said OPEC and its allies could agree to a compromise increase in output of around 0.5-0.6 million bpd.

Saudi Arabia, under pressure from U.S. President Donald Trump, wants to unwind some of the cuts by engineering a "moderate" supply boost in the second half of the year.

Nigerian Oil Minister Emmanuel Ibe Kachikwu, asked by reporters about his position on easing output cuts, said: "We need to discuss with our colleagues first before we make those decisions".

Most analysts agree that the increases are necessary to offset the declines in Venezuela due to the economic turmoil, and the drop in Iranian exports because of US sanctions.

Traditional Saudi allies - the United Arab Emirates, Kuwait, Oman and Bahrain - believe Saudi Arabia was too quick to respond to USA calls for higher production, and have been rattled by Riyadh's close coordination with non-OPEC Russia, sources said. Iran is usually not part of the committee, which includes Russia, Saudi Arabia, the United Arab Emirates, Oman, Kuwait, Algeria and Venezuela.

He went on to say that according to International Energy Agency reports, there is no imbalance in the global oil market, however, next year's situation is another issue.

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