Iran welcomes OPEC production-cut decision

Cuts expected to push up price of crude

General view of a meeting of oil ministers of the Organization of the Petroleum Exporting countries, OPEC, at their headquarters in Vienna, Austria, Wednesday, Nov. 30, 2016. (AP Photo/Ronald Zak)

TEHRAN, Iran (AP) – Iran’s President Hassan Rouhani on Thursday welcomed an OPEC deal that cut the oil cartel’s output to push up crude prices.

Speaking in a provincial meeting, broadcast live on State TV Thursday, Rouhani called the decision “a positive development.”

Iran had initially been hesitant to cut its oil production. The country was eager to make up lost revenue after international economic sanctions were lifted in the wake of a landmark nuclear deal.

Tehran agreed to limit its production to just under 3.8 million barrels per day, almost the same amount of 2005 before beginning of the sanctions. Iran’s arch-rival Saudi Arabia agreed to the largest production cuts, chopping nearly half a million barrels from its current 10.5-million-barrel daily

Later on Thursday Oil Minister Bijan Zanganeh said in a TV interview that the deal proved that “It is possible to cooperate and interact despite rivalries and severe political differences.”


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