Zanganeh warns OPEC may lose effectiveness if oil output caps slip

Zanganeh warns OPEC may lose effectiveness if oil output caps slip

Iran oil minister Bijan Namdar Zanganeh warned that any breach of OPEC’s oil production ceiling will hurt the effectiveness of the organization, and urged strict adherence to the caps.

"Output by some member countries in June was “far above” their original commitment and a violation of that agreement," Zanganeh said in a letter to OPEC President Suhail Al Mazrouei, according to the oil ministry’s news service Shana. 

He didn’t identify those countries. "We are concerned that this violation may continue” for the rest of the agreement “and turn into a routine practice,?" Bloomberg cited the Iranian oil minister as saying.

"In case the OPEC member countries do not fully adhere to their commitments, the effectiveness of this organization as the only developing countries’ intergovernmental organization with almost sixty years of history, will be gradually eroded. Responsibility of this would lay with those member countries violating their commitments," Zanganeh said in the letter.

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