Iran cuts oil output by 545,000 barrels a day

OIL CUT: Iran will reduce its output in line with OPEC's decision. (Getty Images)

Iran said on Wednesday it would cut oil output by 545,000 barrels per day from Jan. 1 in line with OPEC's decision to reduce production.

The Organisation of the Petroleum Exporting Countries agreed in Algeria this month to cut output by 2.2 million bpd from Jan. 1 to try to halt the slide in crude prices that have fallen from $147 a barrel in July to below $40.

Some OPEC delegates have in the past voiced concern about Iran's compliance with previous output curbs. Iran, OPEC's second biggest producer, insists it sticks to OPEC commitments.

"The Islamic Republic of Iran, starting from tomorrow, will cut its crude production by about 14 percent," said Seifollah Jashnsaz, the head of state-owned National Iranian Oil Company, the Iran's state broadcaster reported on its website.

"From tomorrow the daily crude production of the Islamic Republic of Iran will be reduced by 545,000 bpd," he said.

"This action by the Islamic Republic of Iran takes place in the framework of executing the decision made at the last meeting of OPEC oil ministers," Jahnsaz said.

He did not give a total output target.

A Reuters survey put Iran's output in November at about 3.9 million bpd, which analysts said was above Iran's output target following OPEC's previous decision to cut output from Nov. 1. Iran's share of that cut was 199,000 bpd. (Reuters)

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