Iran and Venezuela Leaders Emphasize Fair Pricing for Oil

Nicolas Maduro, the President of Venezuela, met with Iran's Supreme Leader and President during his visit to four oil-producing countries, one month before the OPEC meeting. Officials from both countries called for a 'fair price' for oil and a 'fair share' for producers. The Supreme Leader of the Islamic Republic described the drop in oil prices as 'a tool to pressure independent countries from the U.S.' and mentioned, without naming, that some regional countries 'are fully coordinating with U.S. policies to use oil as a weapon.' According to a report from Ayatollah Khamenei's office, Maduro accused the U.S. of 'numerous interventions and hostilities against Venezuela' in light of the oil price decline over the past two years. Maduro began a four-day tour on Friday, nearly a month before the OPEC members' meeting in Vienna, having previously visited Azerbaijan. The OPEC oil basket price was above $105 in the first half of 2014, but it sharply declined due to excess oil in the market, even falling to $25 in mid-January 2016. Oil prices have risen in the past two months since OPEC and Russia began new negotiations to cut production. In September, OPEC members implicitly agreed to reduce their oil production to between 32.5 million and 33 million barrels, exempting countries like Iran, Nigeria, and Libya, which had reduced their production due to sanctions and civil wars in previous years. However, OPEC members and Russia have not yet reached a specific conclusion on this matter, with a final decision expected at next month's OPEC ministers' meeting. Iranian officials had previously accused Saudi Arabia of causing the drop in oil prices through its policies and in 'coordination' with the U.S. Meanwhile, Russian President Vladimir Putin stated on Wednesday, October 13, that Iran and Saudi Arabia's positions on the oil freeze plan have become closer. Hassan Rouhani, the President of Iran, declared during his meeting with Maduro that Iran 'supports any action aimed at stabilizing the oil market, fair pricing, and a fair share for producers.' According to this report, Maduro also mentioned that OPEC member countries should 'seek a fair agreement with a spirit of cooperation' to stabilize oil prices. Both Iran and Venezuela are OPEC members, heavily reliant on oil exports and the revenue generated from them, and the fall in oil prices and other economic issues have led to a widespread financial and political crisis for the Venezuelan government in recent months.