US oil production increase cause of price hike: Zangeneh

“We are consulting with OPEC (Organization of Petroleum Exporter Countries) in this regard,” he said, adding that the member states require time to make a decision on the issue.

Describing the decision as a tough one, Zangeneh said it was not long since the bloc decided to cut oil output, therefore one should wait to see if the measure had been effective.

The agreement on cutting oil output was signed for the first time in the official meeting of OPEC in Vienna on November 30, 2016.
It was the first such consensus of the cartle since 2008 aimed at pushing up the prices by curbing global supply glut.

In May, OPEC extended the deal for a period of nine months.

Zangeneh reiterated that cutting oil output in OPEC and reaching a consensus on the issue was a difficult task.

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