Iran considers cooperation in the OPEC + format to be meaningless amid the lack of unity within OPEC, said Iranian Oil Minister Bijan Namdar Zanganeh before flying to Vienna for a meeting of representatives of 24 countries participating in the OPEC + deal.

“Iran won’t leave OPEC but I believe OPEC is going to die. It’s going to die with these processes. I have no problem with a production cut. The main challenge to OPEC is unilateralism. The members need to discuss and decide together. It hasn't been OPEC’s norm that two people decide outside OPEC and then the organization approves the decision. This is the biggest threat to OPEC,” Mehr reported quoting Zanganeh. 

Representatives of 24 countries participating in the OPEC + agreement will discuss the extension of restrictions on oil production at meetings in Vienna on Monday and Tuesday. Earlier, Russia and Saudi Arabia declared their readiness to keep the oil production restrictions for another six to nine months. OPEC + transaction is expected to be extended. OPEC countries also expect to sign the Charter on cooperation between OPEC + countries for an indefinite period in Vienna.

OPEC countries have been discussing production policies for the second half of April, but due to uncertainties and geopolitical factors, agreement on production levels has not yet been reached. The deal to reduce production by 1.2 million barrels per day, of which Russia accounts for 228 thousand barrels, was concluded in December 2018 and ends on June 30.

Disagreements within OPEC

Relations between Iran and Saudi Arabia worsened in 2018 after this Arab state supported the restoration of anti-Iran sanctions by the US authorities. On May 8, US President Donald Trump announced the US withdrawal from a nuclear deal with Iran, which suspended sanctions against Tehran in 2012-2015. During this time, more than half of Iran’s oil exports were banned. The day after Trump's statement, Saudi Energy Minister Khaled al-Faleh announced the Kingdom’s readiness to fill the market for oil shortages if sanctions were imposed against Iran.