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OPEC Planning To Extend Oil Cut Extensions If Iran Endorses Pact

OPEC might announce an extension of oil supply cuts until the end of 2019 if Iran joins the pact with Russia and Saudi Arabia to hike the oil prices despite a falling global economy. While all other major members of OPEC have had their say about the production cuts, Iran is yet to release any official statement. The United States, despite not being a member of OPEC, has demanded Saudi Arabia to produce more oil on order to compensate for the lower exports from Iran.

Tehran is the country that has been at the receiving end and will continue to get hit if the United States keep intervening in OPEC’s decision making. The United States had already imposed new sanctions on Tehran over the nation’s nuclear program. Tehran has been vocal publicly against the US and has even objected to the policies presented by Saudi Arabia, stating that it was too close to America. The production cut from OPEC began in 2017, when the members decided to take a step to control the falling prices as America increased their oil production. The United States is now the leading oil producer in the world ahead of every gulf nation and Russia. US’ trade war with China too is hampering the global demand, which again has become a concern for the 14-nation organization. Iran’s spokesperson was scheduled to visit OPEC headquarters in Vienna on Monday.

Talking of American oil companies, they’re having a headache over the oil prices as well. Most of the top oil producers, despite producing record high crude oil, are falling in the share market. Their prices have almost halved in the last few years. Their share in the S&P 500 has also almost halved from 8.7 per cent in 2013 to just 4.6 per cent as of now.

Diane Sorensen
Diane Sorensen Subscriber
Content Writer & Editor At Industry News Works

After studying the Astronomical Sciences, Diane continued to write about space and the universe. Because of her passion and curiosity about topics related to science and astronomy, as well as his understanding of scientific terminology, she is responsible for the coverage of the science section. She is very enthusiastic in studying missions, launches, and discoveries of the space. Her knowledge about the Space domain is of great help to others too.

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