Official: Iran’s oil production capacity rising

TEHRAN (FNA)- Iran’s capacity for the production of crude oil and oil products is on the rise, and this will pave the way for boosting exports, National Iranian Oil Company’s Director for International Affairs Mohsen Qamsari said.

Qamsari told Shana that along with the above developments, the country’s oil tanker fleet has also grown larger compared with last year.

He added that the volume of Iran’s crude oil, oil products and LPG exports varies in different months of the year which is the result of maintenance operations.

Earlier Qamsari had also stated that NIOC sells its crude oil under the international regulations, observing its official oil sale standards and see no need to offer discount.

“Iran sells its crude oil under competitive prices,” the NIOC official said, and added, “As the Iranian oil minister has said earlier after normalization of relations, Iran will seek to regain its traditional markets and may resort to price mechanism if necessary.”

“Even though prevailing recession and imbalance between supply and demand are expected to put downward pressures on prices, you see that prices are not falling, which is the result of speculators’ influence in the market,” he said.

According to Qamsari, despite the reign of oversupply phenomenon in the markets the high costs of oil production in some oil fields is the other factor that stands in the way of falling oil prices.

By Fars News Agency


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