Jeopardizing energy security and heightening market volatility have lose-lose outcomes for all players, Iranian Minister of Petroleum said on Thursday, adding global oil market needs an increase in Iran oil supply.
Javad Owji made the remark after the 30th OPEC and Non-OPEC Ministerial Meeting, OPEC+ coalition, held via video conference on Thursday, June 30 2022, adding today OPEC Plus decided to continue with its decision agreed last month that was to add 648,000 barrels to its daily crude oil production for June and August 2022.
Given a decline in oil production from some OPEC+ producers and a failure to reach the agreed quota as well as a decrease in crude oil and oil products inventories in some big consumer countries, OPEC and its allies agreed, at the 30th meeting, to raise their collective crude oil output by 648,000 barrels per day in August, he noted.
OPEC+ coalition will continue constant and regular monitoring of market developments and take necessary measures to maintain the stability in oil market, he highlighted, adding: “Latest statistics and reports show that OPEC+ members’ compliance reached the recorded 256 percent in April 2022, mainly caused by a drop in some members’ oil production as they have pumped below quota.”
Global oil market is moving towards balance and stability despite concerns over the consequences of geopolitical tensions on world economic growth and possible damages to demand, he said, adding: “OPEC Plus member states are closely monitoring global oil market and the supply-demand balance and they are prepared to make swift decisions and take necessary measures according to the oil market conditions.”
Recent developments in world economy show an increase in inflation’s impacts on many countries and a remarkable rise in fuel prices, he added, saying: “As I have frequently said in recent months, global oil market is in a condition that return of Iran oil can help to meet a part of customers’ needs and make the world markets balanced and calm. Particularly, we will witness an increase in global oil and oil products demand as summer travels are to start in Europe and the United States, therefore; consumer countries are likely to face additional price pressures, especially from oil products market.”
The Islamic Republic of Iran has always stressed that jeopardizing energy security and heightening market turmoil have lose-lose outcomes for all players, he said, adding Iran, the holder of the largest oil and gas reserves in the world, is ready to increase its crude oil output to pre-sanctions levels as soon as possible.