OPEC illogical to ask us to freeze supply, says Iran

The Islamic Republic of Iran says the Organisation of Petroleum Exporting Countries (OPEC) is illogical with its request for Iran to freeze production at January 2016 levels.

The OPEC member country said it would resist any plan to keep its oil output at January levels, adding that it would regain its market share before any “freezing” could take place.

“Asking Iran to freeze its oil production level is illogical … when Iran was under sanctions, some countries raised their output and they caused the drop in oil prices,” Mehdi Asali, Iran’s OPEC envoy, was quoted by the Shargh daily newspaper to have said on Wednesday.

“How can they expect Iran to cooperate now and pay the price? We have repeatedly said that Iran will increase its crude output until reaching the pre-sanctions production level.”

According to Reuters, talks in Tehran between Bijan Zanganeh, Iranian oil minister, and his counterparts from Iraq, Qatar and Venezuela began on Wednesday.

Iran is currently standing in the way of an historic OPEC and non-OPEC deal – first since 2001.

The last global deal in 2001 saw Saudi Arabia persuade Mexico, Norway and Russia to contribute to production cuts, although Moscow did not follow through and instead raised exports.

Iran exported around 2.5 million barrels per day (bpd) of crude before 2012, but US, EU sanctions cut that to around 1.1 million bpd, with the country pledging to raise supply by around 1 million bpd in the next one year.

The meeting in Tehran is as a result of a deal reached on Tuesday by OPEC super power, Saudi Arabia and non-OPEC Russia, to freeze production at January levels if other big oil nations agree to join.

Qatar, Kuwait, UAE and Venezuela said they would join the pact, aimed at stabilising crude oil prices around the globe.

Nigeria has not made its stance known on the deals, with the country in need of 2.2 million barrels  per day at $38 to  meet its budgetary requirements.