Iran encourages OPEC’s oil freeze plan UPDATE
By Nigar Abbasova
The Islamic Republic of Iran, which re-entered the world energy market following implementation of the landmark deal and removal of sanctions imposed on it, is ready to support OPEC's deal on oil output cuts.
Iran's deputy oil minister Amir Hossein Zamaninia said that Tehran was ready to encourage other OPEC members to join a plan to cut output and bring stability to the oil market, mentioning that oil at $55-$60 a barrel is a fair price to bring a balance of supply and demand to the market.
Zamaninia further forecasted that the oil price in the international market will reach the average level of $55 and $60 by 2021.
OPEC members earlier agreed to cut down the cartel’s output to 32.5-33 million barrels per day, while Iran was exempted from an informal agreement and was allowed to pump at the level "that makes sense"
The 14-member group is expected to finalize details, deciding on how much each of its members can pump in its upcoming meeting, scheduled for November 30.
Years of sanctions that have profoundly affected Iran's energy sector, restrained its production and export of oil and gas. The coutnry is now recovering from the negative effects of sanctions, while its main objective is to reach the pre-sanction level of four million barrels of oil per day.
Oil Minister Bijan Namdar Zanganeh earlier said that oil production capacity of the country will hit four million barrels per day by March 2017, adding that production capacity was at the level of 3.8 million (bpd) in the first half of the year. He also said that Iran was aiming to hit 4.6 million bpd within five years.
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