Iran joins Libya in pressuring OPEC to cut oil production

OPEC member Iran has joined fellow member Libya, among other OPEC members, in pressuring OPEC to reduce its oil output before the organization meets on June 5, according to a Bloomberg report. OPEC’s November 2014 decision to maintain its current oil production levels has resulted in an almost 50% global oil price reduction.

Iran Oil Minister Bijan Namdar Zanganeh has recommended that OPEC reduce its output by at least 5% from its current target of 30 million barrels per day (bpd), resulting in a minimum cut of 1.5 million bpd. This exceeds the decrease of 800,000 bpd sought by Samir Kamal, Libya’s representative to OPEC.

Bloomberg noted that another OPEC member, Saudi Arabia, has indicated that it encourages efforts by OPEC and non-members of the organization to improve crude prices, but has not specified any recommendations.

In December 2014, OPEC member Algeria also called for the organization to lower its oil production in order to increase global oil prices.

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