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.