The Iranian government claims that they don’t find it logical to curb their oil production, which is why they are not going to to join the agreement that was reached a couple of weeks ago between Russian and several OPEC members. More specifically, some Iranian officials say that many OPEC members boosted their oil production while Iran was under Western sanctions. Now, when the sanctions are canceled, Iran is also going to catch up with OPEC fellows.
It happens so that the mentioned agreement contradicts Iran’s ambitious plans, which is why Iran is not going to join it even though other OPEC members support the agreement. In particular, Kuwait and some other OPEC members are reported to have agreed to cap their oil production.
According to the Kuwait Ministry of Oil, they are ready to freeze the production volume at 3 million barrels a day. Still, this is going to happen only if other OPEC members do the same. For now, the agreement is signed between Russia as well as such OPEC members as Saudi Arabia, Qatar, and Venezuela . It is important to mention that all together, those nations make up for some 25% of the global oil production.
Apparently, the key reason for this agreement is an attempt to hinder the current downtrend in the international market of crude oil, which seams to never end. Markets are skeptical about the agreement since the participants have to to talk the remaining 10 OPEC members into signing it as well. Iran is on the list and the authorities are reluctant to do it.
