• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 5 mins Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 4 hours Hong Kong protesters appeal to Trump for support.
  • 14 hours Europe: The Cracks Are Beginning To Show
  • 16 hours Iran Vows Major War Even If US Conducts "Limited Strikes"
  • 1 hour Memorize date 05/15/2018 cause Huawei ban is the most important single event in world history after 9/11/2001.
  • 1 hour Millennials: A boil on the butt of the work ethic
  • 3 hours A little something for all you Offshore swabbies
  • 11 hours Ban Fracking? What in the World Are Democrats Thinking?
  • 16 hours LA Times: Vote Trump out in 2020 to Prevent Climate Apocalypse
  • 13 hours When Trying To Be Objective About Ethanol, Don't Include Big Oil Lies To Balance The Argument
  • 4 hours US and China are already in a full economic war and this battle for global hegemony is a little bit frightening
  • 51 mins Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 1 hour Shale profitability
  • 24 hours Yawn... Parliament Poised to Force Brexit Delay Until Jan. 31
  • 11 hours Let's shut down dissent like The Conversation in Australia
Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Oil Crashes To $48 Handle As Iran Says It Won’t Cut Output

Iran’s current crude oil output level will not be reduced under the extension of the OPEC production cuts, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Thursday.

“Iran’s oil output would stand at 3.8 mb/d,” Zanganeh said in Vienna – as quoted by Trend news agency - where OPEC meets to discuss the details of the output cut extension.

OPEC agreed to extend the current cuts for nine months until March 2018 in what was a widely expected decision that sent oil prices plunging as investors hoped for more.

In the initial OPEC deal, Iran was allowed to slightly raise output and keep it capped at 3.797 million bpd. Four months into the deal in which all others – except for exempt Libya and Nigeria – had to cut, the Islamic Republic has been sticking to that production ceiling, OPEC secondary-sources data show.

But Iran, which had argued exemption in the initial deal with the need to return to pre-sanction levels of production, wants to increase its output to 5 million bpd by 2021.

Speaking to Iran’s oil ministry’s news service Shana the day before the OPEC meeting, Zanganeh said, when asked if Iran would cut its crude oil production:

“Iran will not reduce its output.” Related: Does The U.S. Still Need A Strategic Petroleum Reserve?

Also on Wednesday, having touched down in Vienna for the OPEC meet, Zanganeh told CNBC that both a six-month and a nine-month extension would be acceptable for Iran, but dodged a direct answer to the question, Would Tehran agree to cut, if asked?

A day before the decisive meeting, the cartel members were still debating how long the extension would be, Zanganeh said, suggesting that not all oil producers were on board with the Saudi-Russian proposal for a nine-month extension.

With oil prices plummeting 4 percent at 12:33pm EDT on Thursday, with WTI breaking below $50, it looks like a nine-month extension at current production levels is not enough to convince the market.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage



Leave a comment
  • Mark Taylor on May 25 2017 said:
    We already knew this. This is not new. Iran is not planning to cut. With the way they are acting with everything else, we need to put the sanctions back in place.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play