Iran to oppose Saudi proposal to increase OPEC crude output

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The prospect of binding Russian Federation, the world's largest exporter after Saudi Arabia, more closely to Opec may help persuade Iran and Venezuela, another sceptic about the need for an increase, to back higher production in the second half of the year.

Experts like Michael Hewson, chief market analyst at CMC Markets U.K., note that the price of oil is high not only because of OPEC and Russia's agreement to limit output, but also because of Trump's policies, including a decision to reinstall sanctions on Iran.

The so-called OPEC+ group agreed a milestone deal to trim production from January 2017 by 1.8 million barrels a day to clear a global oil glut and shore up low prices.

The Organization of the Petroleum Exporting Countries (OPEC) will meet in Vienna next week to discuss potential reduction or revision to the 1.8 million barrels/day production cut put in place in early 2017.

So an OPEC deal to increase output could also influence the balance of power in the Middle East.

"There was a time when oil producing countries were playing a lead role".

But it's Iran and Venezuela-founding OPEC members and those most affected by US sanctions and unable to boost production-that are most vehemently opposing an increase in the cartel's production.

From outside, Trump is attacking the cartel on Twitter for artificially inflating prices and lobbying hard behind the scenes for a significant production increase.

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U.S. West Texas Intermediate and international-benchmark Brent crude oil posted a volatile session on Monday as investors positioned themselves ahead of the OPEC meeting in Vienna on June 22-23. Trump complained at least twice, on 20 April, and then again on 13 June, about oil prices.

Resistance is being led by Iran, deeply wary of any move by regional rival Saudi Arabia that could push down oil prices at a time when Tehran faces renewed sanctions following US President Donald Trump's decision to quit its global nuclear deal, which is likely to send the country's oil exports plummeting. These numbers suggest that USA and handful of other non-OPEC countries will more than meet global demand. It appears that OPEC could increase production, and if they do that will bring a lot more supply onto the marketplace. A dip in oil prices over this last week suggest that the market is factoring in a likely rise in production levels.

Tankers waiting to load more than 24 million barrels of crude, nearly as much as state producer PDVSA shipped in April, are sitting off the Opec member's main oil port.

China said Friday it would retaliate by slapping duties on several American commodities, including oil.

Iran, the world's third largest crude producer, has reportedly said that Venezuela and Iraq will join it in blocking a Saudi/Russia proposal to raise oil production.

Two OPEC sources told Reuters that even Saudi Arabia's Gulf allies Kuwait and Oman were against big, immediate increases in output.

Whether they can convince those producers whose output is falling to accept an outcome where prices are lower than they might otherwise have been could have implications for not just near-term oil prices but the stability and effectiveness of OPEC in future.