The logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria, May 30, 2016. REUTERS/Heinz-Peter Bader
Your feedback is important to us!
We invite all our readers to share with us their views and comments about this article.
Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.
Alert: If you are facing problems with posting comments, please note that you must verify your email with Disqus prior to posting a comment. follow this link to make sure your account meets the requirements. (http://bit.ly/vDisqus)
The deal OPEC struck in 2016 to clear a global glut by halting a significant chunk of oil production took almost a year of bargaining and brinkmanship.The Organization of the Petroleum Exporting Countries is already cutting daily output by much more than its pledged 1.2 million barrels.If U.S. President Donald Trump also reimposes sanctions on Iran, the cartel's unplanned losses could swell to double the targeted cut.The nation's daily production of 1.5 million barrels is 560,000 barrels lower than October 2016 – the starting point specified in the cuts agreement.There's a 70 percent likelihood that Trump will reintroduce sanctions on oil sales, said Mike Wittner, head of oil market research at Societe GeneraleThat would curb Iran's exports by about 500,000 barrels a day, he estimates.Under the terms of the 2016 OPEC deal, Iran didn't have to reduce production because it was still recovering from the last round of international sanctions. So a half-million-barrel drop in its output, combined with the loss of 900,000 barrels a day of Venezuelan crude beyond its pledged reduction, would double the group's intended cut.
FOLLOW THIS ARTICLE