Page 16 - MEOG Week 41

MEOG NEWS IN BRIEF MEOG

POLICY to simply reactivate the pact as is, even if UAE says OPEC+ plans to
Democratic challenger Joe Biden wins the
Iran nuclear deal hangs on November 3 vote. Biden, vice president in the ease oil cuts from Jan as
Obama administration when the agreement
an election - and it’s not in was reached, has indicated he would seek to agreed
revive it.
America have clung to the accord, holding out for a The energy minister from the United Arab
European nations, China, and Russia
Emirates (UAE) said on Tuesday that OPEC+
While the world looks to next month’s US change of heart or leadership in the US And oil producers will stick to their plans to taper
election for clues on the future of the standoff Iran is hedging its bets. Iranian moderates oil production cuts from January.
with Iran, candidates are preparing for aren’t being entirely cast out because many, OPEC+ - producers from the Organization
another vote that may prove just as pivotal. like Foreign Minister Mohammad Javad of the Petroleum Exporting Countries
Next June, Iranians will also elect a new Zarif, have technical skills and diplomatic (OPEC) and others including Russia - have
president, as the era of Hassan Rouhani, who experience that’ll be needed should talks been reducing output since January 2017 in a
staked his career on clinching the historic resume. bid to balance the market, support prices and
nuclear deal with world powers in 2015, “It’s likely that we will see hardline factions reduce inventories. They are currently curbing
comes to an end, his legacy upended by competing for the position and for them, production by 7.7 million barrels per day,
hardliners in the US and at home. victory for Donald Trump is an opportunity down from 9.7 million bpd. “It will be reduced
As always, presidential hopefuls will be because it gives them an opportunity to again at the end of this year as we walk to
vetted by the powerful Guardian Council, consolidate power,” Sanam Vakil, deputy 2021,” Suhail al-Mazrouei told the Energy
whose members are appointed by Supreme director of the Middle East North Africa Intelligence Forum. “We believe that this is
Leader Ayatollah Ali Khamenei. But the field Program said. “If Biden wins, the system the calculated volume to cater for the demand
is set to be dominated by military men and is faced with a choice, you need someone coming back.” OPEC+ is due to taper their
stalwart conservatives whose influence has who brings relief and gets a deal. You need production cuts by 2 million bpd in January.
surged since 2018, when President Donald someone who has relationships and knows the Mazrouei said he was more optimistic
Trump abandoned the nuclear accord terrain.” about oil demand recovery than the
Rouhani had pledged would be a ticket to BLOOMBERG International Energy Agency, which on
international acceptance and economic Tuesday said that a slow global economy
prosperity. recovery from the pandemic could push a full
Though Iran has rolled back compliance OIL rebound in energy demand out to 2025.
to key commitments in the deal, resuming He said there have been signs of a recovery
enrichment beyond the agreed limits as Aramco CEO says ‘the worst in oil demand as countries lift COVID-19
Trump reinstated and tightened sanctions, it restrictions, noting China was back to almost
has not officially repudiated the agreement is behind us’ for oil 90% to its pre-pandemic levels.
and has indicated its violations could be REUTERS
phased out if penalties are lifted. Tighter US Saudi Aramco Chief Executive Amin Nasser
sanctions have caused Iran’s oil exports to said on Tuesday that “the worst is definitely Iraq, Jordan and Egypt
plummet. Crude production has halved since behind us” for the oil market, as global oil
mid-2018 to less than 2 million barrels a day. demand is recovering and is currently at 90 in talks on reviving oil
A hardliner will have little incentive to million barrels per day.
formally abandon an accord that could Nasser said oil demand in China is almost pipeline project
yet present a lifeline for Iran’s devastated back to its pre COVID-19 levels.
economy, but may not return to the table REUTERS Jordan, Egypt and oil-exporting Iraq have
on the same terms as before or be willing discussed reviving an oil pipeline project that

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