Iran discusses oil comeback with OPEC

April 9, 2021 - 13:27

TEHRAN - Mohammad Sanusi Barkindo, the secretary-general of the Organization of the Petroleum Exporting Countries (OPEC), met with Amir Hossein Zamaninia, Iran’s governor for OPEC in Vienna, on Thursday to discuss the Islamic Republic’s return to the oil market in case of U.S. lifting the sanctions on Iran’s oil industry.

Speaking in the meeting, Barkindo expressed hope that as a result of the ongoing negotiations on Iran's nuclear program in Vienna, the unfair conditions imposed on Iran will end and sanctions will be lifted, Shana reported.

According to Zamaninia, during the meeting, issues related to the current management of the OPEC Executive Board were also discussed.

Iran could be poised to officially rejoin the ranks of oil exporters in the current year as the U.S. seems willing to rejoint the nuclear deal with the Islamic Republic.

Abbas Araghchi, Iran's deputy foreign minister for political affairs, has named the removal of Trump-imposed U.S. sanctions as the only pre-condition before Iran can agree to scale back atomic activities under the 2015 nuclear deal, dubbed Joint Comprehensive Plan of Action (JCPOA).

The United States, for its part, appears willing to play ball after President Joe Biden expressed support for a return to something similar to JCPOA. However, the Biden administration has been adamant that Iran must first take steps to return to compliance, a parameter that Tehran has rejected.

Nevertheless, many experts expect the parties to reach some form of agreement, which could see the oil sanctions lifted in the current year. In fact, the members of the nuclear deal (the UK, France, Germany, Russia, and China) are now getting together in Vienna to discuss what happens next, with the Biden administration also in Vienna, though there will be no face-to-face with the Iranians.

Before the sanctions, Iran was one of the world's leading crude exporters, capable of pumping in excess of four million barrels a day in its heyday.

While the specter of millions of barrels flooding the market could be unsettling for the bulls, experts believe that investors should not fret too much about it.

EF/MA

Photo: OPEC Secretary-General Mohammad Sanusi Barkindo (R) and Amir Hossein Zamaninia, Iran’s governor for OPEC, hold talks in Vienna on Thursday.

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