According to foreign media reports on the 3rd, despite the drop in crude oil prices in recent months, the Organization of Petroleum Exporting Countries (OPEC) decided not to cut production. However, the organization is worried that Iranian oil may flow into the market next year, exacerbating the oversupply.
Badri, Secretary-General of the Organization of Petroleum Exporting Countries, told reporters after meeting with Russian Energy Minister Novak in Moscow a few days ago: "We met in February last year and June this year, and decided to maintain oil production at 30 million barrels per day. We are still not prepared to cut production."
Worried about the global oil oversupply, oil prices fell to a new low in several months. West Texas Intermediate (WTI) for September delivery is about $49, while Brent crude for the same month is about $54.
Russia is the largest oil producer in the world except the Organization of Petroleum Exporting Countries. The Organization of Petroleum Exporting Countries and Russia issued a joint statement after the meeting, saying that the current indicators show that the oil market may "achieve a balance between supply and demand and stabilize prices" in 20 16.
However, analysts worry that Iran reached a landmark nuclear weapons agreement with world powers this month. Once the international oil embargo is lifted in the future, Iran may return to the international oil market on 20 16, which will aggravate the existing oversupply situation and further depress oil prices.
Members of the Organization of Petroleum Exporting Countries 12, including Iran, account for one-third of global oil exports.
However, badri insisted that the Organization of Petroleum Exporting Countries welcomed the lifting of international sanctions against Iran, and said that the organization was able to cope with new supplies.