BY Bunmi Aduloju
Timipre Sylva, minister of state for petroleum resources, says there is no need for the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, to increase oil output.
The minister said this on Tuesday, on the sidelines of a gas exporters’ conference in Qatar — even as the alliance sees a potential deal between Iran and world powers unlocking more supplies, according to Reuters.
“We don’t have to do anything extraordinary this time because we are expecting a lot of production,” Reuters quoted Sylva as saying.
“We are expecting more production if a nuclear deal with Iran works out (since) there will be more production from them.”
Known as the Joint Comprehensive Plan of Action (JCPOA), the Iran nuclear agreement was reached with several world powers, including the US, UK, France, China, Russia and Germany, in July 2015.
According to Reuters, sources said indirect talks between Iran and the United States to revive the 2015 nuclear deal shelved in 2018 by the then U.S. President Donald Trump are now in their final stage.
The deal could pave the way for Iran, an OPEC member, to further raise its oil exports, helping to ease tightness in the oil market.
If finalised, the deal will help push US’ calls for OPEC+ to increase oil production to tackle rising gasoline prices.
On Tuesday, global oil prices neared $100 per barrel, its highest since August 2014, as tensions between Russia and Ukraine heightened the risk of supply disruptions.
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