OPEC members have in recent months repeatedly met to discuss production cuts. The cartel’s members are suffering from the dramatic decline in oil prices over the past two years, which has seen crude dropping to between $40 and $50 per barrel from more than $100 in 2014. This has caused tremendous pressure on both government budgets and economies of oil exporting countries.
Faced with these challenges, OPEC members finally agreed in a September meeting in Algeria to cut production — in principle. Exact quotas remain to be negotiated, which is the subject of an upcoming meeting in late November. While other OPEC members still need to agree on production quotas, Iran — together with Libya and Nigeria — was granted an exemption. This comes as Tehran has repeatedly expressed its unwillingness to accept any reduction of its oil output.
