Go to ...

The Newspapers

Gathering and spreading news from various Russian Newspapers

The Newspapers on Google+The Newspapers on LinkedInRSS Feed

Saturday, January 20, 2018

“The expert explained Iran’s refusal to freeze oil production”

Meeting Russian energy Minister Alexander Novak with his Iranian counterpart Bijan Namdar Zanganeh, the the has not brought the expected results. The Iranian oil Minister stated that his country does not intend to the production. And ready to return to negotiations on this question not earlier, than the volume of oil production reaches 4 million barrels per day.

photo: Kirill Iskoldsky

Experts believe that this position of Iran may bury the very idea to agree on the fixing of production levels among the key players in the oil market. But the fact of the negotiations has had a positive effect on price — cost barrel of last three weeks creeping up.

A complex negotiation process started leading players in the market of production and sale of oil. In February, Saudi Arabia, Qatar, Venezuela and Russia managed to agree to freeze the amounts of black gold at the January level. The countries belonging to OPEC and a few outside the Union – Norway, Mexico and Oman supported this idea. But Iran, a country that is currently actively expanding its “oil position”, yet refused to participate in the arrangements.

– Fixing the production was originally conceived in order to achieve price growth, says Director of Energy development Fund Sergey Pikin. – However, if Iran don’t reach an agreement, then all countries will come out of the negotiations. The meaning then fix? Iran, who just took off his sanctions, doesn’t want himself again in them to drive. Now the level of production in Iran is about 2.8 million barrels. I think the figure of 4 million IRI will be released this year.

To date, the largest oil producers – Russia and Saudi Arabia. The level of production in these two countries of about 10 million barrels per day.

Oil production has now reached a historical high, while consumption is declining. That is fundamentally the situation is not the best, and if nothing is done, it will not change for at least another year. And the negotiations on fixing the level of production, they have already played a positive role. In the last three weeks the price for oil grew, – says Sergey Pikin.

Following negotiations between the oil producers is scheduled for March 20. Will the negotiators to wait until Iran released the designed capacity is not known and difficult to predict.

Related posts:
Russia is going to give a new loan of Mongolia, recently forgiving still
British pound rises on positive expectations from the referendum
17% reduction in the trade turnover between Russia and China in July
"Senile contest of ideas": the Council proposed to spend billions to build airships

Tags: , , , , , ,


More Stories From Economy