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Opec 'must reintroduce oil quotas'

LONDON, April 18, 2015

Opec should consider re-introducing individual output quotas, shuffled quietly to one side in 2008, to prevent oversupply hitting prices if Iran increases its oil exports following a nuclear deal, an Opec delegate said.

A proposal to reintroduce quotas would spark a fierce debate within Opec as national prestige and market share are at stake.

After refusing to cut output last year, Opec is pumping much more than its overall output target of 30 million barrels per day (bpd) because of record Saudi Arabian output, higher Iraqi exports and a partial return of Libyan crude.

"Iraq is increasing each month and if Iran is back, either the price will go down unless there are some sort of arrangements," said the delegate from a non-Gulf Opec member.

The group's output ceiling of 30m bpd, in place since 2012, does not specify quotas for the individual members.-Reuters
 




Tags: Opec | oil quota |

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