Barkindo presents Iran’s OPEC status to Raisi

Sopuruchi Onwuka

The Organization of Petroleum Exporting Countries (OPEC) has congratulated the new President of the Islamic Republic of Iran, Ebrahim Raisi, on his electoral victory and assumption of the country’s political leadership.

The group which controls supply forces in the global petroleum market also reminded the emerging president of the country’s vital position in the OPEC scheme of things, urging him to step into role in his country and also in OPEC.

In a message delivered by its Secretary General, Dr Mohammed Barkindo, OPEC noted that the choice of Raisi at the Iranian polls recognized his lifetime of patriotic service and dedication to the welfare of the country.

He added that the mandate of the Iranian people to the new president extends to roles in OPEC and the international community.

“IR Iran has always held a unique and highly appreciated position in the OPEC Family. In September of this year, following an invitation by the Iraqi Prime Minister, HE Mustafa Al-Kadhirni, OPEC will celebrate the 60th Anniversary of the founding of our Organization. This will take place at the site where OPEC was originally established in A1-Shaab Hall in Bab Al-Muadham, Baghdad. IR Iran as one of our Founder Members will have a significant role to play throughout these celebrations,” he reminded Raisi.

“We are currently in the midst of preparing for this event and will ensure that the event reflects the constructive role IR Iran has played in our Organization’s six decade long history,” Dr Barkindo added.

In presenting President Raise with the updates on OPEC’s interventions in the global oil market, the petroleum industry and the economies of producer nations; Dr recalled that the impact of novel coronavirus disease (COVID-19) had contracted global economy by 3.5 percent, destroyed 9.5 million barrels per day (mbd) of crude oil demand and prompted OPEC to intervene in saving prices from crash.

“During the month of April 2020, oil demand dropped by a staggering 22 mb/d. In response to this unprecedented situation, OPEC knew it had to act. At the 9th and 10th (Extraordinary) Meetings of the OPEC and non-OPEC Ministerial Meetings on 9 and 12 April 2020, it was agreed to adjust downwards overall crude oil production by 9.7 mb/d, starting in May and June 2020; from 1 July 2020 to 31 December 2020 by 7.7 mb/d; and from 1 January 2021 to 30 April 2022 by 5.8 mb/d. This is the largest ever production adjustment by DoC participants, the largest in the history of OPEC, and the largest in the history of the oil industry. It is also the longest adjustment in duration in our history.

“Participating Countries have subsequently reviewed these decisions on a monthly basis to proactively anticipate market developments and improve the core principles upon which our enterprise was founded, namely, transparency, equity and fairness. As a result of these actions, in recent months we have seen a return of relative stability in the oil market,” Dr Barkindo informed President Raisi.

He also reminded him that OPEC and its allies stand ready to further intervene in the market in view of the lingering uncertainty surrounding “the continuing high number of COVID-19 cases in some countries and regions of the world; the uneven nature of the global vaccine rollout, particularly when looking at the developed versus the developing world; and the prevalence of virus mutations.”

“There are also a series of uncertainties related to monetary policies and inflationary pressures in many economies throughout the globe,” Dr Barkindo added.

In such circumstances, he said, participating countries of the Declaration of Cooperation need to continually review market conditions, consult with each other regularly and utilize the forums established in the OPEC and non-OPEC Ministerial Meetings to reach collective decisions in the interests of all producing countries, consumers and the global economy.

He charged the new president to sustain Iran’s steadfast commitment to the OPEC+ DoC.

“We welcome all contributions from your administration in our pursuit of the mutually beneficial goal of sustainable oil market stability.”

The Oracle Today reports thatPresident Ebrahim Raisi took the oath before the Iranian parliament Thursday, promising to work towards lifting of painful US sanctions without compromising the wellbeing of the people.

He admitted that Iran has some shortcomings and problems in addition to external diplomatic and economic hostility from ancient enemies.

“We believe the people’s economic position is unfavourable, both because of the hostility of our enemies and because of the shortcomings and problems inside the country,” Raisi said, adding that his new government would seek to lift “oppressive” sanctions, but would “not tie the nation’s standard of living to the will of foreigners.”

The 60-year-old president steps in at a time of rising tension between Iran and western allies including the United States, Britain and Israel over a deadly ocean going oil tanker attack last week.

Iran is also battling the Middle East’s deadliest outbreak of the Covid-19 pandemic, with more than four million cases and upwards of 92,000 deaths.

President Raisi who is a former judiciary chief officially began his four-year mandate on Tuesday after he was inaugurated by supreme leader of Iran, Ayatollah Ali Khamenei.

He succeeds Hassan Rouhan, who served out his two tenures in office.