Currently, the global oil supply is mandated by the Organisation of the Petroleum Exporting Countries (OPEC) and the Russian producers' January 2017 decision to keep the oil supply in check as there was an excess. However, in light of the fact that the Donald Trump-led US administration is seeking to impose sanctions on Iran in November, Russia is contemplating in hiking the crude output, a CNBC report stated.
Speaking at the Joint Ministerial Monitoring Committee (JMMC) meeting held in Algiers on Sunday, 23rd September, Alexander Novak, Russia's energy minister stated, "I don't think we can discuss the exact number at this point but what I can tell you for sure is that we have significant potential to increase our production.
So we can restore production to October 2016 levels and we cannot go above that but we would be looking at the overall supply-demand balance before we take any decisions." While the global crude production continues to be capped, in recent times, fuelled by the internal economic crisis of some of the crude-producing countries – especially Venezuela – the crude production has reduced.
Moreover, the US administration has also put its business enterprises on notice asking them to stop buying crude from Iran by November, before the sanctions hit. Meanwhile, the American president has also stated that the OPEC was increasing the crude oil prices.
In response to this, at the JMMC, the Iranian representative at the OPEC, Hossein Kazempour refuted Trump's statements even as he went on to note that Trump's tweets were responsible in the hike of the crude oil prices.