There have been numerous sanctions made against Iran for quite some time, and the sooner they end, the better for the country. Senior Iran officials stated the fact that Iran would experience a high level of crude oil exports once the sanctions that were laid against it were alleviated, depending on the future demand for the commodity, and therefore, oil prices should not be weakened further.
The oil minister, Bijan Zanganeh, made it clear that Iran had no intentions of making the oil market worse than it is already. According to Shana, the oil ministry news agency, Minister Zanganeh said, “We are not seeking to distort the market but will regain our market share.”
International sanctions were placed on Iran, and it is more likely to put pressure on the price of oil this year after the sanctions are removed under a nuclear deal which is due by July. Brent crude LCOc1 sold a barrel for $37.28 on Thursday.
Iran is in a bid to regain its lost position as the second largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC). As a way to redeem itself, Iran has boasted to output 500,000 barrels of oil per day after the sanctions have been raised, and after a while, top it with another 500,000 bpd.
Oil prices saw a drastic depreciation after the run made by the Middle East crude oil producers and the United State shale oil drillers that left a shocking, mundane saturation that may take all of2016 to clear up. The sanctions laid against Iran have led cutting oil exports in half, from the pre-2012 position of 2.5million bpd to around 1.1million bpd. The decrease in oil income has made a negative impact on investments.
“The decision on the amount of exports highly depends on the future condition of the market. We will raise our market quota steadily,” the director general for international affairs of the National Iranian Oil Company (NIOC) said. “We will adjust our output to the global market’s demands,” he stated to Shana on Saturday. Without much elaboration on the issue, he further added, “We will exercise great caution to prevent a further decline in international prices and will adopt certain methods and strategies to this end.”
According to Qamsari, Asia and Europe would make potential customers after the sanctions have been lifted from Iran. Due to this fact, Iran would be looking forward to exporting its crude oil to Asia and Europe. Buying stakes in overseas refineries would be a good option, too, Qamsari said.
“One of the methods to ensure the country’s oil sale is buying refineries in other countries but this has to be approved by the administration and the parliament,” Qamsari added. “This is a method that countries like Saudi Arabia, Kuwait, UAE, the United States, China and leading oil giants like Royal Dutch Shell and BP have adopted and we should not stay behind them in this field.”
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