• 30 mins Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 6 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 6 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 7 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 9 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 3 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 6 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 7 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

Shale billionaire and chief executive…

Are Oil Prices About To Turn Lower?

Are Oil Prices About To Turn Lower?

As too many bearish factors…

No Room For Iranian Oil In Current OPEC Strategy

No Room For Iranian Oil In Current OPEC Strategy

Tehran, apparently confident that it soon will be free of sanctions, is now urging OPEC to cut production to allow for the return of Iran to the world oil market.

Iranian Oil Minister Bijan Zanganeh said April 14 in Tehran that the cartel’s insistence on maintaining production at 30 million barrels per day in an effort to reclaim lost market share would leave no room for his country’s oil.

“Even the most conservative OPEC member states do not believe that OPEC production should exceed 30 million barrels per day,” Zanganeh said at a news conference, “and we believe that this amount should be cut by at least 5 percent.” That would be a cut of about 1.5 million barrels a day.

Related: The Real History Of Fracking

In fact, the minister said, as soon as the sanctions are lifted – if they’re lifted – Iran could increase its oil output “very fast. … Within a few months after the removal of sanctions, Iran will be able to increase its oil production to levels that existed before the sanctions were imposed.”

Since September 2014, Iran has been among several of OPEC’s 12 members who urged the cartel to reduce production because of the sharp decline in oil prices. But at its meeting in November, OPEC, led by Saudi Arabia, decided to maintain production at 30 million barrels a day in an effort to win back market share from other producers, mainly US producers of shale oil.

Related: Shell Betting Its Future On LNG

And although Iran, a Shi’a Muslim state, is an adversary of OPEC’s most influential member, Sunni Saudi Arabia, Zanganeh said Tehran has “no quarrel” with any of the cartel’s other 11 producers and expects them to do the right thing. “OPEC is mature enough to regulate itself so that the market would not be harmed after Iran returns to its previous quota,” he said.

Last month, Zanganeh said that once the sanctions are lifted, Iran is prepared to increase oil production by 1 million barrels per day based on the combined production capacity of oil fields that have been out of use because of the sanctions.

Under the sanctions’ constraints, Iran now produces an estimated 2.7 million barrels of oil per day, and of that, about 1 million barrels are exported.

Related: What The Iran Nuclear Deal Could Mean For Asia

Although Zanganeh said Tehran has “no quarrel” with other OPEC members, he said his country has not been affected by certain countries efforts to damage Iran’s economy by keeping oil prices low. No prizes for guessing who that comment was directed at.

“The countries that longed to hurt Iran by reducing [the price of] oil used whatever they could resort to,” he said. “They reduced the prices as much as they could and it is improbable that the prices would go down further beyond the current levels.”

Zanganeh is the second OPEC oil minister this month to call for the cartel to cut production. On April 9, Samir Kamal, Libya’s oil minister, also called for a reduction to prepare for Iran’s possible return to the global oil market. But Kamal called for a more modest cut of 800,000 barrels of oil per day, a little more than half the cut sought by Zanganeh.

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News