The National Iranian Oil Company’s (NIOC) director for worldwide affairs told CNBC Wednesday Iran’s oil output had reached 3.8 million barrels per day (MMBPD) and it would increase production.
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NIOC may raise its production capacity to 4.3m barrels per day in the first quarter of 2017 and to 5.0m bpd in two to three years, he added, noting that the majority of any new production would be of the so-called “heavy” variety. The country is pumping about 3.8 million barrels daily. However, with Iranian production rising close to pre-sanctions levels, Riyadh has signaled in recent weeks it is ready to compromise. “Four million barrels a day production level is not very far from our hands”.
Iran’s position limits the options when producers meet to discuss how to address the persistent crude glut that is weighing on prices.
OPEC members will meet on the sidelines of the International Energy Forum (IEF), which groups producers and consumers, in Algeria on September 26-28, during which they are expected to discuss a possible output freeze.
Mr Novak said the agreement, which might include attempts to limit oil output, was a “historical moment” between members of Opec, the oil producers’ cartel, and non-members such as Russian Federation. “It will be a dud but that’s not a surprise”.
Around 1115 GMT, US benchmark West Texas Intermediate for delivery in October was up 41 cents to $45.24 a barrel.
Despite large gains from Monday, the price for Brent is still lower than the end of August by about 6 percent.
Under the deal, the two countries will form a working group to monitor the market and draft recommendations to stabilize oil prices and ensure steady investment in the industry.
Iran supports an oil price of $50-60 per barrel and any measure to stabilize the market, state TV quoted the country’s oil minister as saying on Tuesday.
Oil prices are half their level of mid-2014, hurting producing nations’ income.
The US and European Union tightened sanctions on the Islamic Republic in 2012 over its nuclear program.
Iran has repeatedly said it needs to reach a level of output of at least 4 million bpd before it agrees to any deal, but one OPEC source said on Thursday the latest request from Iran was to set a target as high as 4.2-4.3 million bpd.
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Most of those oil-related sanctions were removed in January.
