Iran says OPEC right to be cautious about fragile oil market

Zanganeh said oil markets would remain fragile for the near future despite optimistic news about the development of coronavirus vaccines, Press TV reported.

“The situation of the market still remains fragile and supply is high compared to the demand, thus the caution in OPEC is logical under such circumstances,” Zanganeh told reporters following the 180th OPEC meeting which was held virtually on Monday evening.

The remarks came as OPEC members agreed in principle to continue cuts of up to 7.7 million barrels per day (mbd) to the global supply after January when a current cut agreement comes to an end.

Zanganeh said some countries within OPEC and others in the OPEC+ have been opposed to 7.7 mbd of fresh cuts.

He named Russia and Kazakhstan as the main opponents, saying they support a cap of 5.7 mbd on renewed cuts.

However, the Iranian minister, whose country is exempt from the cuts because of the US sanctions, said Tehran would support the majority view in OPEC+.

Reports after the Monday meeting suggested that OPEC members had reached a broad consensus on three months of additional cuts after January if OPEC+ members also agree on the move.