Iran may boost OPEC output to another record

Getty Images

Getty Images

OPEC could potentially boost crude oil production to 33 million barrels a day, the most ever, after international sanctions are removed against Iran amid a global supply glut, according to the country’s OPEC representative.

Related: Kings of Crude: US vs OPEC

The global oil market is already in surplus by about 3 million barrels a day, with Saudi Arabia and Iraq responsible for OPEC’s oversupply in the past six months, Iran’s state-run Islamic Republic News Agency reported Sunday, citing Mehdi Asali. Iran can boost output by 500,000 barrels a day within one week after sanctions are lifted, Oil Minister Bijan Namdar Zanganeh said earlier this month.


upstream_logo


Crude has lost half its value in the past year as U.S. production jumped to the highest level in more than 40 years and Saudi Arabia had record output. Prices collapsed after the Organization of Petroleum Exporting Countries decided on Nov. 27 to maintain production rather than sacrifice market share.


HT Banner


Brent oil for October settlement was trading at $49.01 a barrel, down 0.4 percent, at 1:18 p.m. London time Monday. Prices have fallen about 15 percent this year. High supplies in North America and OPEC, lack of demand growth and the strengthening dollar are all cause for the lower oil prices, Asali said.BMDBannerNew

OPEC pumped 32.1 million barrels a day in July, the 14th consecutive month that the 12-nation group has produced more than its collective target of 30 million barrels, data compiled by Bloomberg show. The 12-member group’s all-time high output was 32.8 million barrels set in July 2008, the data shows.

Related: Citigroup’s shocking report: Oil to fall to $20 and end to OPEC?

Iran made a “big mistake” when it backed OPEC’s decision in December 2011 to discard individual production quotas, Asali said. That allowed Saudi Arabia, Kuwait and other members to take over Iran’s share which was diminishing because of sanctions, he said.

www.bloomberg.com

Be the first to comment on "Iran may boost OPEC output to another record"

Leave a comment

Your email address will not be published.


*