In comments published in the Shargh daily newspaper on Wednesday, Iran’s envoy to the Organization of the Petroleum Exporting Countries, Mehdi Asali, said that Iran was sticking to its targets and should not be expected to sacrifice it’s opportunity to rebalance an oil market thrown out of whack by the policies of other exporting nations while Iran was restricted by the sanctions.
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Speaking to reporters following a joint meeting among ministers of oil and energy of Iran, Iraq, Venezuela, and Qatar here on Wednesday, he said, “Today we had a good meeting and the report of yesterday’s meeting (in Doha) was presented”.
Oil prices would likely remain volatile, Spooner said, as traders and investors reacted to news and rumors about curbs on output growth and possible cuts in production. “How can they expect Iran to cooperate now and pay the price?”
Iran’s IRNA news agency said on Sunday the country had exported its first crude shipment to Europe since it reached a landmark deal past year with world powers.
Jessop does however also highlight a number of caveats to the apparently positive news; he points out that not all OPEC members are “signed up” to the agreement Russian Federation will have to “play its part” in full and that January levels for Russian Federation in particular were “very high”.
In this view, a freeze of production is not a “confidence builder” but an admission that despite the historic collapse of oil prices the sovereign producers can not find enough common ground. The deep-seated rivalry between Iran and Saudi Arabia also complicates efforts. The energy commodity has declined 70 percent since the summer of 2014. “Iraq can sacrifice in freezing its production because it’s going to lead to an increase in oil prices…What’s the benefit of selling oil with low prices”.
US crude closed up $1.62, or 5.6 percent, at $30.66 a barrel.
Oil ministers from the OPEC (Organisation of Petroleum Exporting Countries) held discussions in Tehran Wednesday to talk about a possible production freeze between global Oil producers.
He said, “Anybody who even thought there would be talk of a production cut had to understand, though, that the one thing [you] can know about OPEC is they cheat; they cheat on everything”.
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“We believe that sustaining oil production levels will positively help balancing the future demand with the current oversupply in the market”, he said on Twitter.
