Tehran: Iran’s oil minister said on Saturday he did not expect Opec to change its output policy when it meets next month, and had told the exporting group of its own plans to boost production, for which it did not need permission.
“To increase Iran’s oil production in the global market after the lifting of sanctions, we don’t need permission from Opec (the Organisation of the Petroleum Exporting Countries) or any other organisation,” Iran’s oil minister, Bijan Zanganeh was quoted as saying by IRNA on the sidelines of the meeting of the Gas Exporting Countries Forum (GECF) in Tehran.
Asked if he expected Opec to maintain its strategy at the meeting on December 4, he said: “I don’t expect to receive any new agreement.” It is expected that 2016 will be a tough year for the producer group when international sanctions on Iran are expected to ease, allowing it to boost oil production and exports.
Crude futures have already lost around 60 per cent of their value since mid-2014 as supply exceeds demand by roughly 0.7 million to 2.5 million barrels per day to create a glut that analysts say will last well into 2016.
Brent futures ended at $44.66 a barrel on Friday.
New tensions
Tehran’s determination to reclaim its position as OPEC’s second largest producer has caused new tensions within the group.
Zanganeh also said Opec needed to manage the return of Iranian oil production within its current ceiling.
“Opec is producing more than its ceiling and I asked them to reduce production and respect the ceiling, but it doesn’t mean that we don’t produce more because it is our right to return to the market and to preserve our rights and our share in the market,” he said.
Zanganeh was quoted by the ISNA news agency as saying: “Most of the Opec members believe the fair oil price is $70.” Iran aims to raise oil output by 500,000 bpd as soon as sanctions are lifted in early 2016 and by one million bpd in March.
