Iran snubs Doha proposal, won’t freeze on oil output level

Zanganeh did not explicitly say in his remarks quoted by Shana that Iran would keep its own output at its January level.

Venezuela faces an uphill battle convincing its Iranian counterparts to freeze production, as the Middle Eastern country recently began exporting oil after sanctions were lifted due to a nuclear deal.

“Although this is the first step it should not be the last”.

And Barton says the ability of USA producers to ship oil to overseas markets will only lead to increased US production.

Iran said Wednesday that it would be great if other countries would limit their oil production to boost prices.

Venezuelan Oil Minister Eulogio Del Pino said more talks would take place with Iran and Iraq on Wednesday in Tehran. The visitors, who flew from Doha, where the output deal was clinched on Tuesday, left the Tehran meeting without comment.

“Iran’s position as for this issue is very clear”.

“It could pave the way for further action to be taken should the likes of Saudi Arabia, other OPEC members and Russian Federation deem it necessary”, FGE said.

“This is good start”, the Iranian minister said.

Iran, however, appeared to reject the agreement, saying that it will seek to raise its output to regain lost market share.

Meanwhile, Iran has vowed to gradually increase its oil production this year by about half a million barrels a day, taking advantage of export opportunities now that worldwide sanctions on its petroleum sector have been eased as part of the accord limiting its nuclear program. According to the Vice President of Energy Research, Jackie Forrest, the path to a balanced oil market by the end of the year, is the continuous demand for oil; Iran brings a limited amount of production to the market; and its earnings are offset by production cuts in the rest of the world.

The takeaway for bunker buyers should be that, while prices will likely firm as a result of today’s reaction in the oil markets, there is still massive oversupply and plenty of opportunity for prices to be swung the other way.

Oil prices fell below $30 per barrel in January from as high as $115 in mid-2014, hammering the finances of Russia, Saudi Arabia and other producers.

United States crude rose 60c to $31.26 a barrel, having finished 5.6% higher in the previous session after touching a high $31.49. That’s because global production was near record highs in January.

But a deal would signal a change in Saudi Arabia’s stand. The deal does not add much to rebalance the market, but it is still important that the parties talk, market watchers said. Iran has said it hopes to put another 500,000 barrels a day on the market.

“The production freeze can therefore be seen as an un-official way for Saudi Arabia to make some room for the restart of the Iranian exports”, he said.