Although there would be a cut from the OPEC members, the oil market of Iran in the global outlook would be more stable, as per sources.
Mehdi Assali, a member from the Organization of Exporting Countries, confirmed the stability of the oil markets when he addressed Shana, the news agency of Iran’s Oil Ministry.
Iran is not exporting at its fullest potential as of now. However, the market would continue with its stability even when the exports will be at its fullest. In order to ensure that the global prices of oil do not fall, Iran is planning to limit their exports so that there is no fall in oil prices suddenly.
As of now, the oil reserves of Iran are the third largest among the OPEC countries and is trailing behind Venezuela and Saudi Arabia. Iran had entered a deal with other OPEC countries, as per which they are not allowed to export 1 million barrels per day to six countries in total: China, India, Japan, South Korea, Taiwan and Turkey. But the exports would increase two-fold if the sanctions imposed are lifted, which would only be possible when the nuclear concerns over Iran are addressed.
The Oil Minister of the Islamic Republic of Iran, Bijan Zangeneh, said that Iran is actively negotiating with the international communities to lift the sanctions and bans, so that its oil exports increase and bring in more money to its economy.
However, other nations of the OPEC community do acknowledge that if they fail to address the request of Iran, the entire OPEC would be void and might disintegrate.
In the financial year from 2012-13, due to the sanctions on oil exports, Iran’s economy dropped by 5.8% and it has forced Iran to be in recession.
In a recent meeting, Iran and other OPEC nations decided that they would continue with the same production levels of oil, in spite of the increased demand for oil in global markets. Bijan Zangeneh also emphasized on the fact that OPEC is not a diplomatic organization.