Iran sees little extra oil if OPEC partners stick to deal

Support for increase which had been proposed by Saudi Arabia against objections from Iran was unanimous

The comments underline that disagreement between Iran and Saudi Arabia, longtime rivals in the Organization of the Petroleum Exporting Countries, persists despite extensive talks in Vienna this week aimed at resolving differences. Benchmark Brent oil rose by $2.5 or 3.4 per cent on the day to $75.55 a barrel.

U.S. President Donald Trump had been calling publicly for the cartel to help lower prices by producing more.

"Twitter is not one of the instruments we base our decisions on", Novak added, referring to Trump. That means the country has little to gain from a deal to raise output, unlike Saudi Arabia.

He added that OPEC and non-OPEC countries combined would pump roughly an extra 1 million barrels per day, with OPEC accounting for most of the additional supply, recalling the 171st OPEC Conference Resolution reached on November 30, 2016 for a production adjustment of 1.2 million barrels a day for OPEC Member countries.

Major oil producers outside Opec - including Mexico and Kazakhstan - met ministers from the group in Vienna on Saturday and endorsed a nominal output increase of 1 million barrels per day, said Carlos Perez, Ecuador's Minister of Hydrocarbons.

Not exactly. The output curbs of late 2016 - forged among Opec and 10 oil producers outside the group - remain in place.

By not setting individual targets, the OPEC deal appeared to give Saudi Arabia the leeway to produce more than its previous OPEC quota and fill the gap left by those such as Venezuela who can not pump enough to meet their official allocation. "Need to keep prices down!"

The deal gave a tacit green light to Saudi Arabia to produce more than now allowed by Opec as the 14-nation organisation avoided setting individual country targets.

According to OPEC's recent decision, those countries that have produced less oil compared to others can increase production, the former envoy said. Those which can not, will not. It would be troubling if that jump in prices became a trend, the minister said, adding that producers with spare capacity, such as Saudi Arabia, can fill any gap left by falling production elsewhere. Some countries may be unable to fully deliver the agreed levels but we have agreed on full compliance of the pact. "And that implies there will be indirectly a reallocation", Falih said. They now have the flexibility to respond to disruptions and moderate prices at a time when United States sanctions on Iran and Venezuela threaten to throw the oil market into turmoil.

Falih has warned the world could face a supply deficit of up to 1.8m bpd in the second half of 2018 and that Opec's responsibility was to address consumers' worries.

The non-members have already agreed to ratify the deal, which was sealed yesterday after a last minute compromise between Saudi Arabia and Iran, said delegates. Output among the 24 nations has actually fallen by about 2.8 million bpd, due largely to cratering production in Venezuela and supply disruptions elsewhere. Its latest alliance has already defied many doubters as the world's two largest oil exporters - Saudi Arabia and Russian Federation - increasingly dominate policy discussions.

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