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Iran Rant Reveals How Powerless It Really Is in OPEC: Julian Lee

  • Iran can’t stop Saudi Arabia, Russia from raising production
  • OPEC would revert to pump-at-will without December agreement
Bijan Namdar Zanganeh
Bijan Namdar ZanganehPhotographer: Akos Stiller/Bloomberg

Iranian oil minister Bijan Namdar Zanganeh’s threat to veto any OPEC decision that harms the Islamic Republic will have no impact on oil supply and will be ignored by those producers who are able to boost their oil production, just as happened in 2011, writes Bloomberg oil strategist Julian Lee.

Zanganeh is right to say that the Joint Ministerial Monitoring Committee, which will meet in Algeria on Sunday, does not have the authority to make any decision on a new production agreement. Its job is to oversee the implementation of an existing deal, reached in 2016 with a group of non-OPEC countries, to cut supply by around 1.8 million barrels a day to reduce excess stockpiles of oil.