OPEC nation Iran said it expects the group to stick with its pact to restrain oil supply as world markets don’t need more crude.
The Organization of Petroleum Exporting Countries and its partners will meet next week and debate whether to restore output halted last year. Saudi Arabia and Russia have said it’s time to reverse the cuts and appear to have begun reviving supplies, but face opposition from Iran, Iraq and Venezuela.
“There is no need for a change in the level of production,” said Iran’s OPEC governor, Hossein Kazempour Ardebili, who serves as one of the country’s representatives to the group. “Any increase should be limited to the production allocation in the agreement, which is valid to the end of 2018.”
The International Energy Agency — which advises consuming nations — said earlier Wednesday that output from Iran and Venezuela could drop by 1.5 million barrels a day, or almost 30 percent, by the end of next year because of U.S. sanctions and economic upheaval.
Kazempour rejected the IEA’s scenario, saying “there is no reduction in Iranian production,” which “for the remaining part of the year shall continue as is.” Venezuela will stem declines in its output, he said.