OREANDA-NEWS. Iran won't object to the extension of the agreement on the reduction of production in the framework of cooperation between OPEC and non-OPEC countries, but believes that the cartel is dying because the mandate of the decisions in the alliance actually passed into the hands of Moscow and Riyadh. Iranian Oil Minister Bizhan Namdar Zanganeh told reporters on the eve of the OPEC meeting. "I don't see any difficulties with the extension of the transaction, or even with the increase in production cuts. The problem is different. OPEC should discuss today the one-sidedness of decision-making in the organization," the minister told journalists on his arrival in Vienna. “For me, this is a big question, why the decision to extend the restrictions was actually made in Osaka,” he said.

Zangane also said that Iran would not withdraw from OPEC, but announced an upcoming collapse of the organization. "Iran doesn't leave OPEC, but I am convinced that OPEC is dying. Because of this process", he said, answering the question of how strengthening the power of Russia and Saudi Arabia in the alliance will affect cooperation in OPEC.

June 30 is the last day of the agreement on the freezing of oil production, which the OPEC cartel members, Russia and several other oil producers (a total of 24 countries that are united in the so-called OPEC +) concluded in 2016 and have since been regularly extended. The fate of the deal, the ministers of these countries must decide on Tuesday, July 2.

Countries are likely to prolong the agreement, at least the leaders of the world's largest oil producers, Russia and Saudi Arabia, a leading member of OPEC, agreed on this at the G20 summit in Osaka. Cancellation of the transaction would lead to a rapid increase in production against the background of record production in the United States, which aren't involved in the agreement, and this could bring down oil prices.