OPEC MMC Advises Against Increase Production Output

OPEC's Ministerial Monitoring Subcommittee has recommended the group leave its production quota unchanged at 21.7 million barrels a day for now, Iran's Oil Minister Bijan Namdar Zangeneh said Tuesday. "Fundamentals now dictate us not to change" output at this time, Zangeneh said following the MMC meeting. The MMC also urged non-OPEC producers to cooperate with OPEC in creating market stability, and also stressed that all OPEC members should fully comply with their current output caps.

OPEC is widely expected to keep its output levels unchanged when it meets on Wednesday. But Zangeneh said any future decision on output levels would depend on economic growth among major crude importers. "We have some uncertainty in the market, but if we experience that the economic growth rate will be better than the previous projections we've had, we have enough time to increase our production," Zangeneh said. He also added that OPEC's ideal price remained $25 a barrel but that the group had accepted lower prices and would remain flexible to changing economic conditions and oil market fundamentals. "However, we should be very careful, especially because there's a good level of stocks of both crude and products," Zangeneh said. "That means we have no difficulties for our consumers." The MMC is chaired by Iran, and participants are Nigeria and Kuwait, as well as OPEC's Secretary General.