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Iran will not give any pledge to stop oil output growth

Staff writer ▼ | June 2, 2016
Iran will not give any pledge to stop its oil output growth, Iranan Representative to OPEC said.
Mehdi Asali
Oil exploration   OPEC is still influencing the market
Iran's representative to OPEC, Mehdi Asali, said that Iran supports OPEC decision to fix fair and logical price in the market.

Ministry of Petroleum quoted Asali as saying that under the current circumstances, Iran will not stop the output growth.

On the 169th OPEC session, Asali said the session's agenda is the survey of the oil market and making decision on the oil output level and selection of the new secretary general.

He said that Iran's stance in the session will be clear: OPEC members are expected to understand Iran's situation after several years of unfair sanctions as it tries to recover oil output level and its markets to the level of the pre-sanctions era.

The Petroleum Ministry official said Iran has informed the OPEC members of the issue time and again.

He said the idea of devising the output quotas should be postponed to the time when fair oil prices are restored and markets are stabilized.

Regarding rapid increase in production of certain OPEC members like Iran and Iraq and fall in production of certain other members, the discussion to specify quota will be something complicated, said the official, adding that that's because agreements on quotas will depend on stability of output for a logical time something cannot be met for the time being.

"OPEC is still influencing the market potentially because more than 40 percent of the world crude production belongs to the members."

However, the degree OPEC affects the market depends on various economic and political variables and throughout history, the international institution has undergone many changes, he added.

Iran's OPEC envoy said OPEC's failure to decide for oil supply management in the past two years has been because of many reasons, adding that in general, the OPEC mechanism over the past years has been based on increasing its share in the market.