Iran sees OPEC keeping oil output cap unchanged

*Iranian Oil Minister Bijan Namdar Zanganeh.

*Iranian Oil Minister Bijan Namdar Zanganeh.

*OPEC should include Iran planned output boost within ceiling
*Iran plans to add 1 million barrels a day after sanctions

21 November 2015 – OPEC probably will maintain its current crude output ceiling at 30 million barrels a day, including a planned production increase by Iran, when the producers’ ministers meet next month in Vienna, according to Iranian Oil Minister Bijan Namdar Zanganeh.

Iran has asked the Organization of Petroleum Exporting Countries to accommodate Iran’s return to its previous production level once international sanctions are lifted, Zanganeh told reporters in Tehran. Iran plans to add 1 million barrels a day within five to six months after the curbs are removed, and that increase should be within OPEC’s production ceiling, Amir Hossein Zamaninia, deputy minister for commerce & international affairs, told reporters in Tehran on Saturday.

“I don’t expect to receive any new agreement” at OPEC’s meeting on Dec. 4, Zanganeh said. “OPEC is producing more than its approved ceiling and I asked them to reduce production and to respect the ceiling, but it doesn’t mean we won’t produce more because it is our right to return to the market.”

Iran’s planned increase comes amid a market already oversupplied, and as oil prices have been slumping since the middle of last year. Threatened by surging output mainly from North America and Russia, OPEC has been pumping above its target for 17 months as it seeks to take market share from higher-cost producers. OPEC, responsible for about 40 percent of global oil output, is due to review its production level at the Vienna meeting.

“I sent a letter to OPEC to consider our return to the market and to manage it,” Zanganeh said. “We don’t need to receive any permission from any organization for our return to the previous level of production. It is a sovereign right.”

Saudi Arabia, the world’s biggest crude exporter, led OPEC to reject demands from members including Algeria and Venezuela to cut supply to bolster prices. Venezuela’s President Nicolas Maduro said on state television last week that he is due to meet with Russian President Vladimir Putin in Tehran Nov. 23 to work together on oil prices.
Zanganeh said he was due to meet with Russia’s Energy Minister Alexander Novak in Tehran to discuss the oil market. Iran is hosting a summit of the Gas Exporting Countries Forum on Monday.
*Anthony Dipaola Golnar Motevalli – Bloomberg

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