11:47 GMT +323 June 2017
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    General view of part of Tehran's oil refinery south of the capital Tehran, Iran

    Iran Unlikely to Join Saudi-Russian Agreement to Stabilize Oil Market

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    Recently, Iran said it would support measures to stabilize the global oil market, including an agreement on joint measures with Russia and Saudi Arabia. However, in fact, Tehran is unlikely to join such an agreement because this contradicts Iran’s interests, American experts told RIA Novosti.

    On Monday, Russia and Saudi Arabia came to an agreement on joint measures and coordination with other crude producers to stabilize the global oil market.

    The response from Iranian President Hassan Rouhani was positive. He said that his country will support any measures aimed at stabilizing the prices if those measures are based on equal production quotas.

    At the same time, he abandoned his previous statement that Iran would not freeze output until the Iranian oil industry reached the pre-sanctions production level (4 million barrels a day).

    By sending such controversial signals, Iran wants to have scope for maneuvers because the agreement does not comply with Tehran’s interests, Charles McConnell, Executive Director Energy and Environment Initiative at Rice University, said.

    On the other hand, in the future, an alliance between Russia and Saudi Arabia could become more powerful than OPEC because Moscow and Riyadh are the world’s two biggest oil producers, Michael Moore, Vice President at FearnOil and Executive Director of the NACCSA, said.

    By expressing formal and non-binding support, Iran is using a "normal political tactic," McConnell concluded.

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    Tags:
    oil market, oil prices, agreement, OPEC, Hassan Rouhani, Iran, Russia, Saudi Arabia
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