Iran’s President Calls OPEC Output Cut ‘Success’

Hassan Rouhani

Iranian President Hassan Rouhani on Thursday called the recent decision by the Organisation of the Petroleum Exporting Countries (OPEC) to cut oil output a “success” for the Islamic republic, the oil cartel and the global market.

Mr. Rouhani said OPEC’s decision on Wednesday in reducing the production was a “positive” move.

According to the agreement by OPEC member states, Iran will keep its production at 3.8 million barrels per day (bpd), about the same as the country’s pre-sanction level in 2008.

The cut, effective from Jan. 1, 2017, is the oil cartel’s first oil reduction since 2008.

OPEC has decided to cut its oil output by 1.2 million bpd, setting the ceiling of oil production at 32.5 million bpd.

The reduction is being coordinated with non-OPEC country Russia, which promised to cut its production by 300,000 barrels per day.

OPEC will establish a ministerial committee to monitor the implementation of output cut agreement.