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Here’s why Iran will not agree to an oil output freeze

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Sources gave evidence of Iran’s refusal to consider a production freeze until the pre-sanction output is met, 4.2 million barrels a day.

Head of the oil contract committee at Iran’s Petroleum Ministry, Mehdi Hosseini, said anything less would be a sanction continuum as a result of its disputed nuclear program. He continues by adding, “Our pre-sanction production was something around 4.2 (million barrels per day), and our exports was something around 2.5, 2.6 (million barrels per day) or so. Therefore any other figure less than that it means another sanction against ourselves. It is something we cannot accept.”

This, in line with the previous comments on this issue, comes after Iran avoids a meeting last weekend with global producers on a production freeze. With many sanctions lifted internationally, Iran is eager to recapture market share, exporting oil to Europe with a production of 3.2 million barrels a day and hoping to increase to 4 million by April 2017.

After wind of the failed meeting and avoidance, the conference’s morning session was dominated by one member asking whether OPEC, an alliance of oil-producing nations, had become a “zombie organization.”

OPEC Chairman, Abdallah Salem el-Badri, stated, “I heard many times that OPEC was dead. OPEC will be around as long as there is oil in the ground.” Outside, roughly 30 demonstrators protested against fossil fuels and climate change, chanting: “One, two, three degrees — it’s a crime against humanity.”

Article written by HEI contributor Marcela Abarca.

1 Comment on "Here’s why Iran will not agree to an oil output freeze"

  1. This deluded and confused article evidences the total denial the US petro industry is deeply in. There was no DOHA meeting and there won’t be any OPEC meeting or reinstatement of quotas. Saudi, Iran, Russia and China are acting like Countries w/ big on-line reserves that still profit on $40 oil due to low wellhead costs and a strong dollar. They want all the dollars they can get and are in a fire sale because they can read the renewables 3000% growth last year and exponentially accelerating. Oil is on a rapid and accelerating decline curve. Why else would the Saudis keep the tap wide open. The funniest part is that US refiners think they can affect the price by slowing imports? Good Lord people, US demand is sinking like a mill stone. We are now exporting oil now. Haven’t you heard? Has it affected the futures price? No. Sell it while you can you Ostriches. And OPEC is finished. The Governments of members Nigeria, Iran and Venezuela are either in dissaray and economic turmoil or in Irans case, hate Saudi and will never curtail production after finally getting out from under 35 yrs of sanctions! And don’t forget ISIS has the Iraqui fields. You think they’ll cut back sales at anyone’s urging? We’re witnessing the beginning of the end of big oil. The only player that’s still in denial is US.

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