Iran says US oil boom pushed prices down
Tehran. Iran’s oil minister says the US’s increasing oil production by 0.9 million barrels per day (mb/d) has caused a decrease in oil price.
Minister Bijan Namdar Zanganeh said OPEC hadn’t predicted that the US shale oil production would increase as much as 0.9 mb/d, Trend reports.
He added that OPEC members are negotiating to take a new decision on market management.
“Any decision would be hard to take, because there is no any other way but decreasing OPEC production again.”
OPEC and 12 non-OPEC members agreed in November 2016 to cut oil output by 1.8 mb/d in 1H17. They extended the deal by March 2018 in May.
However, the oil price continued decreasing and Brent benchmark plunged to $45.79 on June 21, which is over 16 percent less than in May.
The decrease in oil price came while OPEC’s compliance with the deal is about 106 percent, though Libya and Nigeria, which are exempt from the oil cut deal, increased output by 350,000 b/d in May, and their production is increasing now.
The US shale oil output will make up more than half of the 1.5 mb/d in non-OPEC supply growth forecast for the next year, and is expected to rise by 0.78 mb/d after an increase of 430 mb/d in 2017, the International Energy Agency reported last week.