Iran Will Not Ask for Permission to Increase Oil Supplies Despite Pressure

Iran will not coordinate with and ask for permission from OPEC on increasing oil supplies to the global market after sanctions are lifted, Iranian Oil Minister Bijan Namdar Zanganeh said.

According to the minister, Iran is not for selling oil at low prices. However, even if prices drop below $30 per barrel the country will increase oil output and export volumes until sanctions are lifted.

He underscored that Iran has the right to increase production and sell oil abroad.

This should be a warning sign for the countries which have taken Iran’s market share in the global oil market since sanctions were imposed, he added.

"The condition of the Iranian oil industry is more than perfect. Now, the country has a great potential," Iranian energy expert Manouchehr Takin told Sputnik Persian.

He pointed out that after sanctions are fully lifted Iran will be ready to increase oil output up to 500,000 barrels a day in the short perspective, in addition to the current oil reserves. In 2016, production will be increased twofold, to one million barrels a day.

The expert said that OPEC countries compete with each other and other nations.

"The decline in oil prices was caused by OPEC countries’ decision to cut production last year. A year after, OPEC countries said they were not ready to cut output to keep the prices at $110-120. The point is that OPEC countries compete with each other over the oil prices," Takin said.

This is why Iran will not cut production in the current situation.

The country has sustained tremendous losses after it was banned from selling oil. Iran wants to compensate losses, and it will increase production, he said. This is a positive and logical strategy.