Iran, aiming to raise its crude exports to pre-sanctions levels is keeping its oil exports open ahead of the Organisation of the Petroleum Exporting Countries’ (OPEC) meeting in June.
Prior to this, the deal between OPEC and non-OPEC producers to shore up crude prices by freezing output failed to pull through in April when Saudi Arabia demanded that Iran, its main rival for influence in the region, join in.
The Iranian government yesterday declared that the country had no plans to freeze the level of its oil production and exports soon.
According to Javadi, who also heads the state-run NIOC, “Under the present circumstances, the government and the Oil Ministry are yet to issue any policy or plan to the National Iranian Oil Company (NIOC) towards halting the increase in the production and exports of oil.”
“Currently, Iran’s crude oil exports, excluding gas condensates, have reached 2 million barrels per day (bpd),Iran’s crude oil export capacity will reach 2.2 million barrels by the middle of summer” Javadi added.
According to reports, Iran’s oil exports had been badly dented by Western sanctions before they were lifted in January.
Since then, Iran has been determined to build its exports back up, making a compromise with Saudi Arabia almost impossible.
A meeting of OPEC members, including Iran, is scheduled for June 2. What will be the outcome?