Iran set to negotiate with Saudi Arabia on international oil market
Feb 10, Tehran: Iran has said that his country is ready to negotiate with Saudi Arabia and other OPEC members over the dire conditions in international oil markets.
Iran's Oil Minister Bijan Zangeneh his country recently resumed oil exports after Western sanctions over its nuclear programme were lifted, and announced it plans to produce 500,000 barrels a day.
The move will add significant pressure on an already oversupplied market, as the Organization of the Petroleum Exporting Countries continues to refuse to cut its production.
The Iranian oil minister said in early January that certain countries' insistence on overproduction was politically motivated.
Islamic Republic News Agency (IRNA) said that if there were a strong political will, the price of oil would have been balanced within one single week.
Minister Zangeneh added that Iran needs as much as $200bn in investments to revamp its oil industry.
According to media reports, the global oil sector has taken a beating since the summer of 2014, losing about 70 percent of its value. OPEC countries have refused to budge on the flooded market, keeping in place a 30 million barrel a day production ceiling.
Another senior Iranian official said on Wednesday the country cannot cut crude oil production because it needs to regain market share and return to pre-sanctions output levels.
OPEC increased its total oil production by 131,000 barrels per day (bpd) in January even though oversupply has been a major reason for falling oil prices, according to data issued by the cartel.
Saudi Arabia and other Arab members of OPEC have so far stopped the group from propping up prices by lowering output, in an apparent effort to use the current slump to win market shares from the US, where oil production is costlier than in the Gulf.
The Oslo Times