Victory for OPEC and Iran
OPEC and non-OPEC partners agreed to cut their combined oil production by 1.2 mb/d next year as part of efforts to preserve a balance in oil supply and demand.
The decision was made during the fifth meeting of the OPEC/non-OPEC Joint Ministerial Monitoring Committee (JMMC) in Vienna.
Meantime, one of the most sensitive and the toughest ever OPEC ministerial meetings ended on a positive note despite all speculation that the Organization of the Petroleum Exporting Countries would fail to reach consensus.
OPEC member countries agreed to cut 800,000 b/d from their output, while non-OPEC producers agreed on 400,000 b/d cut during the first half of next year. Iran, Libya and Venezuela were granted exemption.
The 175th meeting of the Conference of the OPEC was a big test for the oil producer group. In the run-up to the meeting, meddlesome remarks by US President Donald Trump about OPEC's output had dissuaded some oil producers from cutting output, and Qatar even decided to pull out of the body. Consequently, some analysts called into question OPEC's survival and even spoke of its collapse.
Nonetheless, the outcome of the ministerial meeting was a big victory for OPEC and an oil diplomacy success for Iran. In the wake of the meeting, OPEC saw its standing get stronger in political and economic equations for combating US political pressure despite the suspicious presence of US envoy in Vienna.
The failure of the US to win over OPEC and non-OPEC oil producers in its sanctions policy and economic steps taken by this organization sent a clear message that the world has reached political and economic maturity and it will no longer buckle down to illogical pressure. Even self-styled superpowers will no longer be able to impose their illegitimate demands on other nations.
The fifth JMMC meeting recorded a diplomatic victory for Iran and a big achievement for Iran's minister of petroleum, Bijan Zangeneh.
As acknowledged by international media, Iran emerged winner in the 175th meeting of the OPEC Conference.