|Iran will propose a cut in OPEC quotas if prices fall sharply: minister||
TEHRAN – Iranian Oil Minister Bijan Namdar Zanganeh has said that the country will propose a cut in OPEC quotas if the market prices fall sharply.
“However, I do not forecast any considerable change in oil prices in the current year,” IRNA quoted Zanganeh as saying on Monday.
As a founding member of the Organization of Petroleum Exporting Countries, Iran will propose solutions to prevent from any further drop in the prices, he said.
Brent crude edged lower toward $107 a barrel on Monday after six nations struck a fresh six-month deal with Iran over its nuclear program and U.S. President Barack Obama urged Congress not to impose additional sanctions on the country, Reuters reported.
Obama's comments act in favor of Iran and contribute to more downside in oil markets given the potential inflow of Iranian barrels to oil markets.
On January 6, Zanganeh said the return of Iran to oil markets will not lead to a decrease in prices.
He supported OPEC’s policy for stabilizing its ceiling output at 30 million barrels per day.
“We believe it is our right to try to increase our exports,” Zanganeh said. “I hope that all OPEC countries show wisdom, and when member countries, after limitation, return to the market, they understand that they should open the doors.”
On January 10, Zanganeh said Iran earned $34 billion through exporting crude oil and gas condensates in the first nine months of the current Iranian calendar year, which began on March 21.
In December 2013, Zanganeh said Iran could boost production to 4 million barrels a day next year if sanctions are lifted. The nation is currently exporting about 1.2 million barrels a day and has earmarked 1.5 million barrels of daily sales in its budget, which includes 300,000 barrels of condensates.
The Iranian minister has invited French Total, Royal Dutch Shell, Norwegian Statoil, Italian Eni, and British Petroleum as well as U.S. Exxon and Conoco companies to develop oil projects in Iran.
Iran has urged other OPEC members to make room for its eventual return to oil markets after it reached an interim deal with world powers over its nuclear program in November.
The International Energy Agency has said global oil demand will be higher than expected next year and that could push up oil prices amid persistent production disruptions.
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