Iran: OPEC Not Likely to Adjust Ceiling on Output

OPEC is not likely to change the production ceiling it has when the oil-producing bloc meets during June, said Bijan Zanganeh the Oil Minister of Iran on Sunday, according to Mehr the semi-official news agency there.

Lowering the production ceiling in OPEC would require a consensus amongst all members, and under the current conditions, it does not seem likely that the production ceiling at OPEC would change, the agency quoted Zanganeh as saying.

In April, Zanganeh said OPEC should lower its daily target of crude production by at least 5%, or equal to approximately 1.5 million barrels a day.

OPEC will hold a meeting June 5. At its November meeting, OPEC led by Saudi Arabia the oil kingpin, decided it would not cut output so it could defend market share, resisting the calls certain members like Venezuela and Iran to lower production to maintain prices.

Lower prices of oil have caused problems for the less wealthy producers in OPEC, including Iran. The June 5 meeting to be held in Vienna will likely have renewed demands by some members to lower production, but countries that favor curbing production see that as unlikely to happen.

Iran wants other members of OPEC to make way for an increase in its exports if it is able to succeed in reaching its long sought after nuclear agreement with six world powers. A deadline for the agreement on its agreement for the nuclear program is set for June 30.

The cost of oil going down has also hit energy companies across the U.S. as they have been hit by fewer profits. Many have had to pull back on exploration or new drilling projects.

There have also been a number of job layoffs in the industry across the U.S. and well as consolidations by larger companies in an attempt to cut costs.

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