Friday, January 29, 2016

Iran Says It Won’t Join OPEC Production Cut, before reaching pre-sanctions production level


Iran Says It Won’t Join OPEC Production Cut, before reaching pre-sanctions production level. (WSJ)

Iran wouldn’t coordinate a crude-oil output reduction with the Organization of the Petroleum Exporting Countries until its own production returns to pre-sanctions levels, a top Iranian oil official said, potentially dashing market hopes of a supply cut.

Iran “won’t consider a cut” until its exports have increased by 1.5 million barrels a day over current levels of roughly 1.1 million barrels a day, the official said. The country is furiously restarting its oil exports after the lifting of nuclear-related western sanctions, which had forced its production down by more than a third.

Russians cutting production is one way to push up prices and Russia can do that, but only in Summer, as it’s technically impossible to do that in winter because of the cold. 

Mr Zanganeh said Iran could increase production by 500,000 b/d immediately after the lifting of sanctions and reach its pre-sanctions output level within seven months. Hmmm......Seems like before Summer Both Russia and Iran won't cut production. By they way anyone heard about those Millions of barrels of Crude Oil Iran had stored at sea during the sanctions?  Read the full story here.

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