The Organization of the Petroleum Exporting Countries and its allies will meet on Tuesday and likely discuss Iran’s return to the crude market, according to Investor’s Business Daily.
- The group will discuss output limits, with production set to be increased by 350,000 barrels per day in June and by 441,000 barrels per day the following month.
- Issues could arise as Iran and Western powers are in talks for the Joint Comprehensive Plan of Action (JCPOA) that caps Iran’s nuclear program in exchange for relief on economic sanctions.
- The administration of former President Donald Trump backed out from the deal and blocked oil exports from Iran, but a new deal could mean lifting sanctions.
- Iran could add between 500,000 to 1.5 million barrels per day of crude which would pull prices downward.
- Russia’s Deputy Prime Minister Alexander Novak said this should be considered as Iran belongs to OPEC, and the group will calculate the balance accordingly.