Iran expects others in OPEC to cut oil output

Reuters: Iran expects fellow Organisation of the Petroleum Exporting Countries (OPEC) members to cut back output and make room for rising oil supplies from Tehran when Western sanctions are lifted, Foreign Minister Mohammad Javad Zarif said on Thursday.

Sanctions have cut Iran’s oil exports by more than half over the past 18 months to about 1 million barrels per day (bpd).

But Iran may soon be able to release more supply into world markets if a dispute over its nuclear work can be resolved.

The rigorous measures have cost it market share in the OPEC – mostly to its main regional political rival Saudi Arabia, and neighbour Iraq.

“I am confident that within OPEC we will be able to reach agreement under which those who had taken over Iran’s quota will stop, allowing Iran to (export) its rightful share,” Zarif said in an interview with Russia’s state-owned Rossiya 24 broadcaster.

Iranian Oil Minister Bijan Zanganeh has said it will take six months after sanctions are lifted to return to full oil output capacity of 4 million bpd.

Western oil experts say Iran could probably raise output to3m bpd to 3.5m bpd within six months of the lifting of sanctions but would struggle beyond 4m bpd.

Zarif met with his Russian counterpart Sergei Lavrov and is due to meet Russia’s President Vladimir Putin later on Thursday.

By SHANA

 

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