OPEC’s leader Saudi Arabia and Russia were trying on Thursday to convince fellow oil producers to raise output from July to meet rising global demand, with Iran still signalling it would support only a modest increase in supply.
Persian Gulf producers did not agree on need for output increase: Sources
Iran will veto an anticipated proposal by Saudi Arabia and Russia to increase global oil production when major producers meet in Vienna on Wednesday, stressing that it will have Iraq and Venezuela by its side to block the move.
Oil demand will grow steadily in 2019 thanks to a solid global economy, but the world may face a large supply gap by late next year if OPEC cannot cover any supply shortfalls, the International Energy Agency said on Wednesday.
Iran criticized a US request that Saudi Arabia pump more oil to cover a drop in Iranian exports and predicted OPEC would not heed the appeal, setting the stage for a tough meeting of the producer group later this month.
Oil rose above $75 a barrel on Tuesday to its highest since November 2014 before paring some gains, supported by OPEC-led production cuts, strong demand and the prospect of a US pullout from the Iran nuclear deal.