Al-Badri: OPEC is not ready to reduce oil production despite falling prices

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) stated on Thursday, August 8, that despite the recent decline in oil prices and concerns over a possible increase in Iranian oil exports, the organization has no plans to reduce its production. According to AFP, Abdullah Salem al-Badri, after meeting with the Russian energy minister in Moscow, said: 'We held a meeting to review the oil market last December and in June this year, and we intend to maintain the production ceiling of 30 million barrels per day as before.' Recently, oil prices fell to their lowest level in months due to concerns over oversupply. Last week, oil prices in global markets reached $53, marking the lowest price in four months. The recent drop in prices occurred despite a slight improvement in global oil prices over the past few months. However, on Thursday, crude oil prices saw a slight increase following reports of a decline in U.S. oil reserves. OPEC and Russia stated in a joint statement after Thursday's negotiations that indicators suggest a 'more balanced state in the oil market and its stabilization' in 2016. Analysts have noted that Iran's return to the global oil market following the nuclear agreement with the P5+1 countries could lead to new tensions within OPEC. The comprehensive nuclear agreement signed on June 14 with six world powers paves the way for the lifting of international sanctions against the Islamic Republic and the gradual return of Iran to global oil markets next year. OPEC, which has 12 members including Iran that supply one-third of the world's oil, is concerned that increased oil supply from Iran could saturate the market and lead to further declines in oil prices. Nevertheless, al-Badri stated that OPEC welcomes the lifting of sanctions against Iran and that the organization will be able to handle the increase in crude oil supply. He remarked, 'We are pleased that sanctions against Iran are being lifted. Now none of the OPEC member countries are subject to international sanctions.' According to the OPEC Secretary General, the organization will adjust to Iran's increased production. Al-Badri emphasized that global markets will be able to absorb the increase in Iranian crude oil production and supply after the sanctions against the country are lifted.