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Iran announces for first time supporting cheap oil

Oil&Gas Materials 7 March 2015 12:16 (UTC +04:00)
An Iranian top oil official announced for first time that Tehran supports the lower oil prices.
Iran announces for first time supporting cheap oil

Baku, Azerbaijan, Mar. 6

By Fatih Karimov - Trend:

An Iranian top oil official announced for first time that Tehran supports the lower oil prices.

Mohsen Ghamsari, director for international affairs at the National Iranian Oil Company said March 6 that the cheap oil is in favor of crude oil producers.

The OPEC oil basket price has plunged from about $108 in 1Q14 to around $55.77 on March 5.

Ghamsari said that the oil price wouldn't go above $60/barrel in the next two years.

According to Mehr News Agency, Iran's crude oil export slipped below one million barrels per day during recent months and the country's rivals are attempting to fill the vacuum in international markets.

Iran's crude oil export was above 2.2 million barrels per day (mb/d) in 2011, but the western sanctions imposed in mid-2012 have pushed Iranian oil export volume to around one mb/d in 2013.

After achieving an interim nuclear agreement in November 2013, Iran's oil export increased steadily to around 1.11 mb/d, however, the volume reportedly decreased slightly during recent months again.

Ghamsari said Iran will do as much as possible to recapture lost market share after sanctions are eliminated.

"We are currently selling oil to China, India, Japan, South Korea, Taiwan and Turkey," he said.

Ghamsari dismissed the reports published in some media outlets saying that Iran offers discounts to its oil clients.

Edited by CN

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