Iran urges OPEC to cut oil production to rising prices

Iran urges OPEC to cut oil production to rising prices

The Iranian oil Minister Bijan Namdar Zanganeh believes that nobody is happy with current oil prices and OPEC should take action on the regulation of the market.

MOSCOW, 19 Oct. Member countries of OPEC should cut oil production to raise prices to the level of 70-80 dollars per barrel, said the Minister of oil of Iran Bijan Namdar Zangane (Bijan Namdar Zanganeh).

“Nobody is happy with current oil prices. OPEC needs to make a decision on the regulation of the market by reducing production”, — quotes Agency Bloomberg of a word Zanganeh. The Minister does not expect that the cartel will decide to cut oil production at its next meeting on 4 December 2015.

OPEC continues to exceed its own quota of 30 million barrels per day, for 16 consecutive months. The cartel thus seeks to protect its share in the world oil market. According to the October report, OPEC oil production in September increased by 0.11 million barrels per day, up to 31,57 million barrels per day.

Iran could increase oil exports by 500 thousand barrels a day during the week after the lifting of sanctions against Tehran. In the six months after the lifting of sanctions the state can increase exports to 1 million barrels per day, to regain market share lost during the period of sanctions, the Agency cites the opinion of the managing Director of National Iranian oil company (NIOC) Roknoddin Javadi (Roknoddin Javadi).

Iran expects to produce 4.7 million barrels a day by March 2021, according to Javadi. According to the Agency, the production volume of Iran in September amounted to 2.8 million barrels per day.

According to the NIOC, the volume of daily oil production in Iran in August rose by 50 thousand barrels to 2.9 million barrels — the highest level since July 2012, when the introduction of new sanctions against the Republic led to a sharp decline in production and reduce exports of “black gold” from Iran by more than 50%.