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    General view of part of the Tehran's oil refinery south of the capital Tehran, Iran

    Iran to Consider Oil Production Freeze at 4Mln Barrels Per Day

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    Iran might agree to cap its oil output at what it believes to be the pre-sanction level of four million barrels per day, Iranian Minister of Petroleum Bijan Zanganeh said Wednesday on the sidelines of the International Energy Forum in Algiers.

    ALGIERS (Sputnik) — In response to the question about the desirable freeze level, the minister told RIA Novost:

    "It's the figure that we said and believe close to 4 million barrels [a day] pre-sanction."

    The members of the Organization of the Petroleum Exporting Countries (OPEC) discussed, among other strategies to help raise oil prices, the introduction of the oil output limits. A number of the meeting's participants indicated that the final decision might be worked out at the OPEC November meeting in Vienna.

    At the moment, Iran's oil production level is at about 3.6 million barrels per day.

    In January, the European Union, the United Nations, and partially the United States lifted their sanctions against Iran after the International Atomic Energy Agency verified Tehran’s compliance with a nuclear agreement reached in July 2015.

    Iran Yet to Receive Proposal on Special Oil Output Freeze Conditions for Country

    Iranian authorities have not received proposals that would include special conditions regarding oil output freeze for the country, the Iranian oil minister said.

    "I haven't received any proposals yet," Zanganeh told RIA Novosti.

    Global oversupply and stagnating demand have caused oil prices to plunge from $115 per barrel in June 2014 to less than $30 per barrel in January 2016. Prices recovered amid Nigeria's and Venezuela's output outages and growing demand in May, reaching a peak of over $50 per barrel in early June.

    In April, major oil-producing states failed to reach an output-freezing agreement in Doha, Qatar. Saudi Arabia, which had previously said that it would freeze output only if Iran followed suit, cited Tehran’s absence from the talks as the reason for not supporting an output freeze.

    "I hope and I try [to sign an oil output freeze agreement until the end of the year]…We try to make a decision in Algeria, we try…it's a consultative meeting in Algeria, it's not a formal meeting," Zanganeh told reporters on the sidelines of the International Energy Forum (IEF) in Algiers.

    Zanganeh added that Iran did not expect any oil output freeze agreement to be reached at the Algiers meeting.

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    Oil in Turmoil (134)

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    Tags:
    oil output, International Energy Forum (IEF), OPEC, Bijan Namdar Zanganeh, Iran
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