Despite the oversupply, Iran in recent months has accelerated production as it seeks to recover the output it lost under Western sanctions tied to its nuclear program.
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The country’s oil exports are expected to reach 2 million barrel in the Iranian month that ends on 19 March from 1.75 million the previous month, Zanganeh said.
Crude inventories across the U.S. probably hit record highs for a fifth consecutive week last week, rising 3.3-million barrels, a Reuters poll of analysts said.
And Money Morning Global Energy Strategist Dr. Kent Moors – a 40-year oil industry veteran who’s advised the highest levels of USA and Russian energy agencies – says there are two consequences of this low oil-price environment that will offer a number of long-term profit opportunities.
Crude oil futures dropped by Rs 22 to Rs 2,614 per barrel today as speculators cut down their bets amid a weakening trend in Asian trade.
OPEC expects global demand for its crude to average 31.52 million barrels per day (bpd) in 2016, down 90,000 bpd from last month’s forecast.
Iran has more negotiating power now than it did when Saudi Arabia, Russia, Venezuela and Qatar agreed to freeze production at January levels, Iradian said. “We will accompany them afterwards”, said Zanganeh, according to INSA.
Iranian Oil Minister Bijan Zangeneh said his country would consider a cap on production levels once his country regained a stronger position in the post-sanctions era.
Other oil-producing nations shouldn’t hold their breath on Iran, the International Energy Agency recently suggested.
“On the whole, Iran supports the need for coordination between oil exporters, including a possible freeze. There is no sign of weakening demand growth”, the source said.
Everything seemed to be in place for a bottom to the slide in oil prices.
Those sanctions were effectively removed in January, paving the way for Iran to increase its production of crude and adding uncertainty to already jittery oil markets.
Iran has “reasonable arguments” not to be constrained by the freeze for now, Novak told reporters Monday at the Russian embassy in Tehran.
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He said oil markets were now more balanced, but yet called for a solid deal on stabilizing output, “otherwise the markets will face more uncertainty, which will lead to more volatility”.
