Iran has walked out of a key meeting with the peers of Organisation Petroleum Exporting Countries, OPEC over its growing rift with Saudi Arabia on increasing the cartel’s oil output. The meeting was aimed at laying the groundwork for today’s crucial meeting of 14 nation OPEC to discuss easing supply-cut deal with 10 partner countries.
Iran’s Oil Minister Bijan Namdar Zanganeh said in Vienna yesterday that they were not going to be a party to the agreement. The output curbs have been in place since January 2017. Saudi Arabia is now pushing to raise production again in order to meet growing demand in the second half of 2018.
But the proposal has run into resistance from Iran, Iraq and Venezuela, who would struggle to immediately raise output and fear losing market share.
Iran is particularly vocal about its objections as it braces for the impact of fresh US sanctions on its oil exports after President Donald Trump quit the international nuclear agreement.