6 March 2020 - 14:07
  • News Code: 300681
OPEC Pegs Deeper Cuts at Non-OPEC Support

VIENNA (Shana) – Iranian Minister of Petroleum Bijan Zangeneh said oil producers at OPEC had uniformly proposed a major cut in the group’s crude oil output, but waited for non-OPEC allies, especially Russia, to back the move by considering cuts in their production.

Zangeneh talked to reporters just minutes before heading to OPEC headquarters in Vienna to join the 8th meeting of OPEC and non-OPEC oil producers, a coalition called OPEC+.

Question: What is your estimation and prediction of the outcome of today’s meeting?

Zangeneh: Yesterday, at the OPEC meeting, we decided to propose to the OPEC+ meeting 1.5 mbd of oil cuts until the end of June; a proposal which was later modified to consider the level of trims until the end of 2020. OPEC would agree to undergo 1 mbd of the cuts with non-OPEC producers cutting half a million of their output. Right now, I am heading to the OPEC+ meeting, and I hope we will strike a deal in the meeting so that the OPEC proposal could be implemented from the beginning of April. Actually, I suppose it’s going to be a tough meeting but I still hope we will be able to reach an agreement.

Question: Are you confident you will reach a deal today?

Zangeneh: I wish.

Question: Do you thing the Russians are onboard? Has anything changed since last night?

Zangeneh: We need time to consult with each other and to discuss. The concept of meeting is to discuss with each other and reach an agreement.

Question: What’s at stake if you don’t get a deal today?

Zangeneh: I hope not to witness that situation.

Question: You said last night that there is no plan B? So is it possible that OPEC+ relationship could fall apart?

Zangeneh: We are trying to reach an agreement with our colleagues in non-OPEC countries.

Question: Iran has one of the highest number of coronavirus cases outside of China. How concerning is this to you?

Zangeneh: No. I believe that we are announcing and declaring our situation but some countries do not say anything about their situation.

Question: [unclear]

Zangeneh: We have not received any important assistance from any countries especially from the US. The United States does not allow us to buy drug and food for the Iranian people. And when, they say, the secretary of state says Iran we have no sanctions against food and drug it’s not correct because with which money are we going to buy food and drug when all of our exports is under sanctions? Food, oil, oil products, petrochemicals, iron, copper are all under sanctions. With which money are we going to buy food and drug for the Iranian people?

Question: How much as the virus affected the economy?

Zangeneh: No it hasn’t had a considerable effect so far.

Question: If there is no plan B what is the result?

Zangeneh: We are trying to find a way. It’s our mission.

News Code 300681

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