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Any US sanctions relief for Iran will not cause an oil market shock. Iraqi oil minister Thamir Ghadhban said late Wednesday. adding that he did not think an OPEC non-OPEC committee will consider calling for deeper production cuts because of the potential return of Iranian barrels.
`It`s a point to think about. but I don`t think it will be on the table tomorrow.` Ghadhban told reporters in Abu Dhabi. where the Joint Ministerial Monitoring Committee is scheduled to meet Thursday morning.
Bloomberg reported earlier Wednesday that US President Donald Trump had discussed easing sanctions on Iran before the departure of national security adviser John Bolton. sending crude prices lower. Front-month ICE Brent futures were trading at $60.85 b at 1902 GMT. down 2.45% from the previous close.
According to the report. Treasury Secretary Steven Mnuchin supported the plan in order to open talks with Iran. while Bolton. who was either fired or resigned Tuesday. disagreed.
The JMMC. on which Ghadhban sits. is tasked with assessing market conditions and tracking compliance with production quotas under the 1.2 million b d supply cut accord that OPEC. Russia and nine other allies have in place through March 2020.
Ministers and delegates have indicated that the committee was unlikely to take up any proposals for deeper cuts. despite slumping oil prices and bearish market forecasts for 2020. Any policy changes would likely wait until the full 24-country coalition`s next full meeting December 5-6 in Vienna. Ghadhban said.
`We have room to see what will happen between now and early December.` he said.
Iran`s crude exports and production have plummeted because of the sanctions. which were reimposed when Trump withdrew the US from the Iran nuclear deal late last year.
Iran pumped 2.30 million b d in August. according to the latest S&.P Global Platts survey of OPEC production. down from 3.60 million b d a year ago.
Iranian oil minister Bijan Zanganeh has said his country could return to pre-sanctions production levels within three days if the measures were lifted.
Ghadhban downplayed any bearish impact. saying that local Iranian consumption of crude remains high and that any return of Iranian barrels to the market would be gradual. because of Iran`s deteriorating oil infrastructure. even with an estimated 50 million to 60 million barrels in floating storage.
`It will not be a shock.` he said. `I don`t see it will be a serious problem at all.`
