Minister rejects Iran-driven oil price crash
Minister of Petroleum Bijan Namdar Zangeneh has dismissed fears a of a price crash if Iran ramps up oil production to around levels before sanctions.
Iran is fresh from a mutual understanding with the West over its nuclear program and the country expects to boost its oil exports by one million barrels per day once a final deal is clinched.
Speaking in Beijing where he is for crucial energy talks, Zangeneh said OPEC is able to take Iran’s return to the markets in stride and “coordinate itself” to make room for it.
“Common sense requires that when Iran returns to the market, other OPEC members make room for it and allow each country to have its production according to OPEC quotas without harming market prices,” he said.
The global oil market is facing a glut amid Saudi Arabia’s refusal to cut production, pushing down prices to levels unseen since 2010.
Zangeneh said the strategy doesn’t work and OPEC needs to discuss output levels before its next meeting in June.
OPEC members are under pressure from a 50% collapse in oil prices. The Saudi kingdom’s allies in the organization are not unscathed and they have sounded out their displeasure with the existing policies.
Observers say in their June 5 meeting, OPEC members are mostly likely to crank up pressure on Riyadh to drop its policy of flooding the oil market.
Several reasons are being cited for the Saudi brinkmanship. Energy experts say the Saudis are trying to hold high-cost producers’ feet to the fire, citing US shale prospectors.
Others say the kingdom’s policies are rooted in its intention to pressure Russia and Iran -- both among major oil producers in the world.
Zangeneh has said Iran is able to boost production capacity to 4.8 million barrels per day within few months once sanctions are removed.
“Iran is ready to return within a few months to its production levels before (sanctions), which is its natural and legitimate right, once the sanctions are cancelled,” he told IRNA in Beijing.
The nation was OPEC’s second largest producer before sanctions were imposed and Zangehen -- the Islamic Republic’s savviest man in the energy sector – is on a mission to reclaim the position.
HB/HB
Iran not worried that Trump may toughen oil sanctions: Minister
Iran’s oil output falls slightly in October, OPEC data show
Iran authorizes imports and sale of unleaded gasoline at free prices
VIDEO | Jordanians condemn Israel’s ban on UNRWA activities in occupied Palestine
VIDEO | Million-man march held in Yemen in support of Gaza, Lebanon
Iran says resolved to ‘legally’ pursue Gen. Soleimani assassination case
VIDEO | Outraged over Gaza genocide, Iraqi protesters burn Israel, US and UK flags
Far-right German party calls for UN probe into ‘Berlin’s role’ in Nord Stream blasts
Trump’s ‘Make America Great Again’ shows US debilitated, desperate: Fmr. IRGC chief
Jordan rage: Protesters blast Israel’s genocide in Gaza, carnage in Lebanon
Pentagon official says ‘shocked’ by Yemen’s firepower, arsenal
PressTV NEWSLETTER
now
This makes it easy to access the Press TV website
