An Iranian flag flies over an oil refinery -Raheb Homavandi/Reuters Iran has agreed to join an output freeze after it reaches 4 million barrels per day in production, which essentially means that it will not entertain any freezing of its output until it gets its production back up to its highest level since 2008.
This was the result of talks between Iran and Russia over the weekend, and it comes ahead of another meeting—possibly in April—between Russia and OPEC countries, and while not surprising, it still managed to send oil down Monday from its three-month high.
"As long as we have not reached 4 million bpd in production, they should leave us alone," Iranian Petroleum Minister Bijan Zangeneh said.
How long would we have to wait for Iran to join an output freeze? Not too long. It’s currently ramped up production to somewhere between 2.8 million barrels per dayand 3.5 million barrels per day. But it won’t be in time for the tentative April meeting, which means that Iran would be excluded from any deal.
According to Zangeneh, Iran exported 1.75 million barrels per day last month and crude exports should hit 2 million barrels per day this month.
In the meantime, Iran is calling on the U.S. to remove restrictions that would keep American oil and gas companies from working in Iran. Iran’s oil minister also confirmed that its state-run company had held talks with General Electric. Separate U.S. sanctions still throw a wrench into investing in Iranian oil and gas, for the time being.
This was the result of talks between Iran and Russia over the weekend, and it comes ahead of another meeting—possibly in April—between Russia and OPEC countries, and while not surprising, it still managed to send oil down Monday from its three-month high.
"As long as we have not reached 4 million bpd in production, they should leave us alone," Iranian Petroleum Minister Bijan Zangeneh said.
How long would we have to wait for Iran to join an output freeze? Not too long. It’s currently ramped up production to somewhere between 2.8 million barrels per dayand 3.5 million barrels per day. But it won’t be in time for the tentative April meeting, which means that Iran would be excluded from any deal.
According to Zangeneh, Iran exported 1.75 million barrels per day last month and crude exports should hit 2 million barrels per day this month.
In the meantime, Iran is calling on the U.S. to remove restrictions that would keep American oil and gas companies from working in Iran. Iran’s oil minister also confirmed that its state-run company had held talks with General Electric. Separate U.S. sanctions still throw a wrench into investing in Iranian oil and gas, for the time being.
Read the original article on OilPrice.com. Copyright 2016.
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