Iran may cap output if OPEC remains committed to cuts
Iran will be capping its crude oil output at 3.8 million bpd in the second half of the year if fellow OPEC members stay committed to the cuts they had pledged, Iran’s Oil Minister Bijan Namdar Zanganeh said on Tuesday, as quoted by state news agency IRNA.
“If OPEC members stay committed to the agreement [on freezing output], Iran will produce 3.8 million BPD of oil in [the] second half of the current year,” Zanganeh said, as reported by Reuters.
OPEC decided to curb its total output by some 1.2 million bpd in the first half of this year, with the option to extend the supply-cut deal into the second half of 2017. In the November agreement, Iran was allowed to slightly raise its production and keep it capped at 3.797 million bpd between January and June, while other fellow OPEC members – except for exempt Libya and Nigeria – all had to cut their respective production.
Although the cartel is expected to decide on a possible extension in May, speculation is rampant whether the cuts should or would be extended and whether OPEC’s efforts are not all in vain, given the rise in U.S. shale output.
OPEC’s Monthly Oil Market Report released today shows that Iran’s output in February was 3.814 million bpd—an increase from the 3.778 million bpd production from January. So, Iran is basically keeping its end of the deal, and its oil minister’s words, so far.
Since most of the Western sanctions on Iran were lifted in January last year, the Islamic Republic has been trying to restore its crude output and exports to pre-sanction levels, and used this bargaining chip in obtaining a kind of leeway in the OPEC production cut deal. Most recently, Iran was said to have ousted Iraq from the no.2 spot of crude suppliers to India, behind Saudi Arabia.
According to Tethys Oil’s managing director Magnus Nordin, the Swedish oil company is strong and proposes an extra dividend through redemption. The Swedish Oil sector is not in crisis and the...Read More
A Turkish military operation blocked the drillship Saipem 12000 belonging to Italian energy giant ENI in the eastern Mediterranean. The Saipem 12000 rig was halted Saturday by a Turkish Navy ship...Read More
The new agreement signed with Ranya International will allow Iraq to build new Oil Refinery in the semi-autonomous Kurdistan region. Iraqi Oil Minister Jabbar al-Luaibi has signed a contract to build...Read More
The new blocks are located in the waters around Sao Tome and Principe, close to Nigeria, Cameroon, Equatorial Guinea and Angola A partnership between BP and Kosmos Energy has won exploration...Read More
The U.S. announced their intention to open most of the country’s offshore waters to oil and gas drilling, to expand domestic production. January 5th The U.S. Department of interior is ready to...Read More
December 31st Saudi Arabia’s plan to delete its budget deficit by 2023 relies on the increase in Oil Revenues over the next six years. That is what Saudis predict, according to...Read More
After UN sanctions against North Korea for its continuing ballistic missile tests, China has ceased to export oil, gasoline, jet fuel and diesel to the rogue nation. December 28th According to data...Read More
Become a partner
If you are interested in becoming a Dealoil partner please get in touch by emailing us at firstname.lastname@example.org. We look forward to hearing from you. The Dealoil team