OPEC Agrees Modest Hike In Oil Supply After Iran Softens Stance
Market Squeeze
Falih has warned the world could face a supply deficit of up to 1.8 million bpd in the second half of 2018 and that OPEC's responsibility was to address consumers' worries.
"We want to prevent the shortage and the squeeze that we saw in 2007-2008," Falih said, referring to a time when oil rallied close to $150 per barrel.
OPEC's deal to release more supply centres on the idea of returning to 100 percent compliance with existing, agreed cuts. Current compliance is around 40-50 percent above target because of production outages in Venezuela, Libya and Angola.
Zanganeh has said that if OPEC returned to regular compliance, the group would raise output by around 460,000 bpd. Iran has objected to having members with additional capacity such as Saudi Arabia fill Venezuelan output gaps.
Falih also said the real increase for OPEC and non-OPEC would be smaller than the nominal gain of 1 million bpd. He said OPEC could meet again in September to adjust the deal.
OPEC sources also said Iran had demanded that U.S. sanctions be mentioned in the group's post-meeting communique.
The United States, which rivals Russia and Saudi Arabia for the position of world No.1 oil producer, is not participating in the current supply pact.
(Additional reporting by Ahmad Ghaddar, Ernest Scheyder and Vladimir Soldatkin; Writing and editing by Dale Hudson and Dmitry Zhdannikov; Graphics by Amanda Cooper)
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