Oil output freeze deal - measure against Iran?

Business Materials 24 February 2016 12:47 (UTC +04:00)

Baku, Azerbaijan, Feb. 24

By Fatih Karimov - Trend:

The agreement between some OPEC members and non-OPEC oil producers on freezing oil output level is a measure against the Islamic Republic, the Iranian government's spokesman, Mohammad Bagher Nobakht believes.

This move means that they don't want to recognize Iran's right to revive its pre-sanctions oil output, Nobakht said, Iran's Tasnim news agency reported.

Global oil market is suffering from over-supply, Nobakht said, adding that the OPEC members should open space for the Islamic Republic's output.

"We expect a realistic approach from the OPEC members on the issue, recognizing Iran's right," Nobakht added.

Russia and OPEC's major oil producers, including Saudi Arabia, agreed to freeze oil production at the January levels during a meeting in Doha on Feb. 16.

Yesterday Hossein Jaber Ansari, the Iranian foreign ministry's spokesman emphasized that Iran's policy to go back to pre-sanctions production level is intact.

"We hope the countries, which have in the meantime increased their output, will reduce it," added the Iranian diplomat.

Mohsen Ghamsari, director for international affairs at the National Iranian Oil Company, said Feb. 20 that Tehran increased oil exports by 400,000 barrels per day in February - right after the removal of international sanctions against Iran in January.

Iran's crude export in February reached 1.4 million barrels per day (mbpd), Ghamsari said, forecasting that the figure will stand at 1.5-1.56 mbpd by March.

Free of sanctions, Iran plans to increase its oil export by 500,000 barrels per day, and then raise the figure by another 500,000 to two million barrels per day in a six-month period at the next step.