Azerbaijan says early OPEC+ meeting unlikely; Iran backs more output cuts

Moscow — Azerbaijan energy minister Parviz Shahbazov said it's unlikely the OPEC+ coalition of oil producers will move up their meeting that's scheduled for early March.

"An early meeting in the OPEC+ format due to the coronavirus most likely won't happen," Shahbazov told reporters, according to Prime News Agency. "Countries are discussing the coronavirus ... the OPEC secretariat is coordinating these discussions. Azerbaijan is also presenting its position."

A technical committee of delegates advising the OPEC+ alliance of oil producers on the impact of the coronavirus on oil demand last week advised an additional 600,000 b/d output cut. Allies have already agreed to reduce production by 1.7 million b/d through March. But delegates last week said Russian representatives in the talks asked to return to Moscow for consultations with their leaders.

With no imminent action pending, OPEC+ ministers have kept their March 5-6 meeting in Vienna as scheduled for now, instead of moving it forward. Any deal would require unanimous approval of the entire OPEC+ coalition, composed of OPEC, Russia and nine other allies.

Iran's support

Iran will support cuts that are approved by the majority of members, oil minister Bijan Zanganeh said Saturday. "How much they cut, we will support," he said. "Anything that the majority reaches, we support. We support those who want to decrease."

The coronavirus will impact Saudi Arabia and Russia more than it will Iran, he added.

Concerns that the outbreak could blunt global crude demand has pushed oil prices sharply lower in recent weeks. Front-month Brent settled Friday16% below its January 20 peak, while WTI futures were down 14% over the same period.

Azerbaijan's finance minister, Samir Sharifov, said there is no reason to panic. "We must take this calmly," he told reporters, according to Prime. "Under a long-term process of falling oil prices, we can make certain adjustments to our economic policy," he said. "But I don't think we need to take hasty steps. We have enough foreign exchange reserves and, if necessary, are ready to respond to undesirable shocks."