29 Mar 2024
Saturday 2 January 2016 - 17:07
Story Code : 194969

Iran return to Int値 market not to worsen oil price plunge: Official

TEHRAN, Jan 02 (Shana) All domestic sectors are required to cooperate with the Ministry of Petroleum in crude exports in the post-sanctions era, said the director general for international affairs of the National Iranian Oil Company (NIOC).

Room 1424 of the ministry is going through a busy period, receiving foreign delegations and holding talks on regaining Iran痴 lost export quota. Iran seeks to prepare the ground for pumping another 1 million barrels of oil per day into the global market, which is apparently a herculean task.
的n the post-JCPOA era, Iran should purchase its requirements only from those states that import Iranian crude and products. In case we decided to proceed in isolation, it would be absolutely difficult to reclaim our share, Mohsen Qamsari said in an exclusive interview with Shana.

Full text of the interview follows:
Shana: Would you please comment on Iran痴 latest progress in talks with oil customers?

Qamsari: During the period Western sanctions intensified, Iran did not cut its relations with its oil customers and took part in a large number of international conferences. At present, the country is experiencing a new situation in its cooperation negotiations which requires greater care and seriousness.
How is Iran going to make room for its additional barrels, given the current excess supply of 2 mbpd in the global market?

In addition to the market痴 supply excess, the global oil market has undergone two other changes in the past three years. During the period, oil prices stood at about $100 a barrel, a number of nascent crude companies and producers emerged. High oil prices made it quite economical for them to increase their oil output.

Furthermore, due to an uncertainty about the exact date of the lifting of the embargoes, a number of Iran痴 traditional oil customers implemented certain changes in their refineries to be able to process other crude types. Moreover, at present, due to the introduction of new methods, the type of crude is not a matter of great importance for refineries across the world. Therefore, countries are far less dependent on their traditional suppliers.

Currently we are faced with a saturated market which also witnesses a number of newly-emerging producers who will sell their products at any prices to maintain their quota. They offer incentives recklessly.
How is Iran supposed to enter such a market?

The government has a number of observations to make before returning to the market. Nevertheless, it has to tackle its budget deficit by raising oil revenues. However, we will exercise great caution to prevent from a further decline in international prices and will adopt certain methods and strategies to this end.
What methods?

Perhaps, it is not plausible to elaborate on this at present. Current prices fail to reflect the realities of the international oil market and, therefore, are not acceptable.
A number of critics maintain that oil prices witnessed a downward trend once Iran announced that it intends to raise output, does this hold true?

Iran has repeatedly announced that it is capable of raising its daily output 1 mbpd in two phases. This is a technical issue. Nevertheless, the decision on the amount of exports highly depends on the future condition of the market. We will raise our market quota steadily.

Nevertheless, I do not agree with those who find Iran accountable for the drop in international prices. Iran announced its production capacity to inform the international market of its true capability. We will adjust our output to the global market痴 demand.

How does Iran plan to regain its quota?
Two strategies can be adopted to this end. We can either fight for our lost quota, which is quite possible given the methods we have, or look for new markets. For instance, India plans to purchase 2 more million barrels of oil in the near future. China is also studying the probability of raising its crude imports. We are required to grasp such opportunities.

By SHANA
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