Iran’s minister surprised with falling oil price after OPEC deal extension
Baku, Azerbaijan, May 26
By Emil Ilgar – Trend:
Iran’s Oil Minister Bijan Namdar Zanganeh said that falling oil price after extension of oil cut deal among OPEC members on May 25 has surprised him.
“I hope that the prices would grow in the coming days,” Mehr news agency quoted Zanganeh on May 26.
Brent benchmark fell in May 25 even after extension of oil deal for nine months to March 2018. The oil price also decreased by 0.03 percent to $51.43 on May 26 again.
After implementation of 1.8 mb/d oil cut deal in 1H17, achieved between OPEC and 11 other producers, the oil price jumped to about $67, but after fluctuations plunged to around $50 during the last few weeks.
Zanganeh said that the compliance of OPEC members was about 100 percent and for non-OPEC producers it was above 90 percent.
He hoped that extension of oil deal would keep prices at $55-60/barrel in 2017.
Iran is allowed to produce 3.797 mb/d of crude oil by 1Q18.
Extension of the deal is in favour of Iran, because the country plans to increase its oil output from new fields by 0.35 mb/d, while its oil output would decrease by 0.3 mb/d from old fields during the current fiscal year, started on March 21.
In total, Iran’s oil output would stand flat.