News ID: 254804
Published: 0249 GMT June 24, 2019

Kazakhstan: Iran, Venezuela sanctions may complicate global oil deal talks

Kazakhstan: Iran, Venezuela sanctions may complicate global oil deal talks
EPA

Talks between OPEC and its allies next month about whether to extend their pact on cutting oil supplies “won’t be easy” and may be complicated by the situation facing Iran and Venezuela, Kazakh Energy Minister Kanat Bozumbayev said.

The Organization of the Petroleum Exporting Countries and other large oil producers, including Russia and Kazakhstan, meet in Vienna on July 1-2 to discuss whether the oil output deal, which expires after June 30, should be continued, Reuters wrote.

“I think it won’t be easy,” Bozumbayev told reporters about the talks, in comments cleared for publication on Monday, citing “different positions” among parties to the deal.

He said Iran and Venezuela both faced US sanctions. “Will they want to (extend) or not? It’s hard (to say),” he said.

Kazakhstan wanted the deal extended into the second half of the year, he said, describing the oil price in a range of $60-$70 per barrel as “suitable.”

Benchmark Brent oil is now trading at about $65.

He said there was no need for higher oil prices, adding: “No one needs it as production in one big country will increase. (A country) which does not enter any agreements,” referring to the United States, which is not party to the production deal.

The United States is now producing about 12 million bpd.

Bozumbayev said this month that Central Asia’s biggest oil exporter had cut more production than required by the pact so far this year, reducing output to 1.76 million barrels per day (bpd), well below its 1.86 million bpd quota.

 

 

   
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