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WORLD NEWS Wednesday 20 June 2018

Iran rebuffs Trump's call for OPEC to increase oil output

By KIYOKO METZLER power in the Middle East.
Associated Press Iraq's oil minister, Jabbar Ali
VIENNA (AP) — Iran lashed Hussein Al-Luiebi, sounded
out Tuesday against U.S. more optimistic about a
President Donald Trump's deal, saying "we are after
call on OPEC to increase oil the stabilization of the mar-
production and limit global ket."
energy prices, saying the Ultimately, Hewson says,
cartel "is not an American the 14 countries in the Or-
organization." ganization of the Petroleum
The OPEC oil ministers be- Exporting Countries are like-
gan arriving in Vienna on ly to agree on a production
Tuesday ahead of their of- increase.
ficial meeting Friday, when "There is an element of self-
they will also confer with preservation in seeking to
Russia, a non-OPEC coun- do this, as while most oil
try that since late 2016 has producers prefer higher
cooperated with the cartel prices they will also want
to limit production. to avoid a scenario where
Analysts expect the group prices reach a level where
to consider an increase in demand drops off sharply,
production of about 1 mil- thus triggering a global
lion barrels a day, ending slowdown, as well as accel-
the output cut agreed on In this April 6, 2018 file photo, a former farmer works at a primitive refinery as he makes crude oil erating the push for renew-
in 2016. into diesel and other products, in Rmeilan, Hassakeh province, Syria. able (energy)," he said.
The cut has since then Associated Press q
pushed up the price of
crude oil by about 50 per- son, chief market analyst
cent. The U.S. benchmark at CMC Markets U.K., note
in May hit its highest level that the price of oil is high
in three and half years, not only because of OPEC
at $72.35 a barrel. That and Russia's agreement to
prompted Trump to call on limit output, but also be-
OPEC to cut production, cause of Trump's policies,
tweeting in April and again including a decision to re-
this month that "OPEC is install sanctions on Iran.
at it again" by allowing oil That crimped the country's
prices to rise. ability to export crude, limit-
Iran's oil minister, Bijan Nam- ing supply and pushing up
dar Zanganeh, said upon global prices.
arriving in Vienna that The U.S. sanctions on Iran
"OPEC is not an organiza- also mean that if OPEC
tion to receive the instruc- agrees on an increase in
tion from President Trump output as a group, Iran will
and follow it." be one of the countries to
Underscoring how diffi- lose out, as it will not be
cult the discussion about able to export as much as
a production increase will it would like.
be, Zanganeh said that By contrast, Saudi Arabia,
Trump's comments have the cartel's biggest pro-
cast doubt on the prospect ducer and a fierce regional
of a deal. rival to Iran, could have the
"Every decision in OPEC room to increase output
needs the unanimity and I more — and make more
don't believe in this meet- money — to make up for
ing we can reach agree- the shortfall in countries like
ment," he said, adding the Iran.
issue "has been politicized So an OPEC deal to in-
by President Trump." crease output could also
Experts like Michael Hew- influence the balance of