Reuters: Iran believes that the freezing of oil production is insufficient to maintain prices

LONDON, 18 February. The Iranian authorities believe that a global agreement on freezing of the level of oil production would be insufficient to maintain prices and give balance to the market, because the world produces too much oil. This opinion was expressed to Reuters sources in the Iranian oil industry, familiar with the negotiations between the Islamic Republic and other raw materials producing countries about the possible conclusion of such a Pact.

“The problem of the market is oversupply, said one Iranian source. – You must do something to get rid of those extra barrels. If the level of production will freeze the people that it is at the maximum, it will not help the market.”

A second source told the news Agency that the discussion on the freezing of production should be continued after “countries that have increased their production – namely, Saudi Arabia will reduce its production, and Iran will return to the production level, which was prior to the imposition of sanctions.”

Russia and OPEC agreed to freeze oil production

16 February in the Qatari capital Doha, the Saudi Arabia, Qatar, Venezuela, included in OPEC and Russian energy Minister Alexander Novak expressed the readiness to save, on average, in 2016 oil production at the level of January of the current year, if other countries-oil producers will join this initiative.

On Wednesday in Tehran passed negotiations of Ministers of oil of Iran, Venezuela, Iraq and Qatar, who discussed the possibility of “freezing” the level of oil production. Following the talks, the Iranian oil Minister Bijan Namdar Zanganeh said that Iran would support any initiative to improve the situation with oil prices.

Meanwhile, as noted by Reuters, during the negotiations, Iran stuck to its standard position that Tehran must restore the market share lost during the years of sanctions, and added that regardless of that will make Iran, “the world is already flooded and oil that nobody wants”.