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Report: Iran, Iraq, Venezuela to block proposal to boost oil supply

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Report: Iran, Iraq, Venezuela to block proposal to boost oil supply

Venezuela and Iraq support Iran's plan to oppose a Saudi Arabia-backed proposal to increase oil output among members of the Organization of the Petroleum Exporting Countries and other oil producers, a move that would put the three countries on a collision course with other members ahead of a June 22 meeting in Vienna, Bloomberg News reported June 17, citing Iran's representative to the group.

Hossein Kazempour Ardebili told Bloomberg News that there would be a "breach of the cooperation agreement" if Saudi Arabia and Russia, a key OPEC nonmember, push through with a plan to end global output cuts as soon as next month.

"The market is well supplied, and OPEC should abide by its decision up to the end of the year," Kazempour Ardebili said.

Russian Energy Minister Alexander Novak had said OPEC and other nations could consider increasing production by as much as 1.5 million barrels a day, although a June 18 Bloomberg report said the bloc was weighing a compromise deal that would boost output by between 300,000 and 600,000 barrels a day over the next few months.

U.S.-sanctioned Iran and Venezuela would struggle to raise output even if their quotas were increased, Bloomberg said.

Kazempour Ardebili added that OPEC must not yield to pressures from U.S. President Donald Trump, who has complained of high oil prices.

"We call upon our brothers in OPEC and Russia that we do not need to appease Trump, who sanctions two OPEC founders and also Russia," he said.