Iran confirms sending letter to OPEC on restoring its pre-sanction output, once the sanctions are lifted.

Iran confirms sending letter to OPEC on restoring its pre-sanction output, once the sanctions are lifted. (Taz).

Iran’s oil minister Bijan Namdar Zanganeh has confirmed that Tehran has sent a letters to OPEC members about raising its crude output once the sanctions are lifted.

The letter reads that Iran will return to its pre-sanctions output level in a very short time once the international sanctions are removed, Zanganeh said.

Zanganeh made the remarks upon his arrival in Vienna, Austria on June 3 to take part in the 167th Ministerial Conference of the Organization of the Petroleum Exporting Countries (OPEC) and the 6th OPEC International Seminar.

“We have asked OPEC to take the issue into account while making decision,” Zanganeh said, the oil ministry’s official SHANA news agency reported.

He further said that if OPEC members want to maintain the crude prices in the current level they should open space for Iran’s output. “We will not wait for anybody’s decision about our action to increase the output,” Zanganeh said, adding OPEC has a production ceiling that is not divided between the members currently.

Currently, OPEC's oil production quota stands at 30 million barrels per day.

In its November 2014 meeting, OPEC left the ceiling of production unchanged, despite calls by some members such as Iran and Venezuela to reduce production to shore up prices.

Iran wants other OPEC members to make way for a rise in its exports if it succeeds in reaching a final deal with six world powers (the US, UK, France, Russia, China, and Germany) over its nuclear program. A deadline for agreement on the nuclear issue falls on June 30.

By holding 157 billion barrels of recoverable crude oil reserves, Iran possesses the world's fourth largest reserves of crude oil.

Iran’s current oil production is estimated to be around 2.8 million barrels per day of which about one million barrels are exported.


Tehran once was OPEC’s second-biggest producer and now stands at the fifth place. Hmmm....It's going to be exciting times for OPEC once the sanctions are lifted.

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Oil prices rise amid doubts on ability of Iranian oil export.

Oil prices rise amid doubts on ability of Iranian oil export. (Taz).

Oil prices rise amid the doubts on the ability of Iran to export oil until 2016, British economic research and consulting company Capital Economics said in a report obtained by Trend.

Analysts mentioned that oil prices have rebounded since the middle of March after having fallen in the first two weeks of last month. They have been especially strong this week.

“Prices were volatile in March as fighting in Yemen escalated causing prices to rise and details of a deal between Iran and the West were released, which then caused prices to drop sharply. However, they quickly rose again as it became apparent that Iran would be unable to export oil until 2016 at the earliest,” analysts said.

Tehran and P5+1 (the US, UK, France, Russia, China, and Germany) reached a political framework for the ongoing nuclear talks on April 2.

Oil prices initially fell by around 5 percent on the announcement but have since recovered all of their losses.

Crude oil prices jumped to fresh 2015 peaks on April 16. Brent crude for June delivery rose 66 cents to settle at $63.98 a barrel, rallying from a $62.00 low and reaching a 2015 peak for front-month Brent of $64.95.

U.S. May crude rose 32 cents to settle at $56.71, hitting a 2015 high of $57.42 after recovering from a $55.07 intraday low.

Brent's premium to U.S. crude was back above $5 a barrel, now comparing June contracts, after the spread narrowed to $3.34 intraday on Wednesday, the day Brent's May crude contract expired, Reuters reported.

Capital Economics’ analysts forecast Brent prices at $60 per barrel in 2015 and $65 per barrel in 2016. WTI price is forecasted at $55 per barrel in 2015 and $65 per barrel in 2016.


OPEC basket crude price is forecasted by British analysts at $57 per barrel in 2015 and $62 per barrel in 2016.

Iran to call for emergency OPEC meeting if oil price falls below $100

Iran to call for emergency OPEC meeting if oil price falls below $100.(TI).‎‏Iran will request an emergency meeting of the Organization of Petroleum Exporting Countries (OPEC) in case the oil price falls below 100 dollars per barrel, the Mehr News Agency quoted an unnamed official in the oil ministry as saying.

Iranian Oil Minister Rostam Qasemi had previously said that according to the agreement reached in the 161st OPEC meeting in Vienna, when oil price falls below 100 dollars per barrel, the situation is considered critical.

The global price of oil has fallen sharply in the recent days. Brent crude oil sank this week to an eight-month low.

London's Brent North Sea crude slumped on Monday to $101.18 per barrel, which was the lowest since July 13, 2012.

According to a Mehr report, oil prices are expected to fall below 100 dollars in the next few days.

The market was rocked by forecast downgrades for 2013 from OPEC, the International Energy Agency (IEA) and the US government's Energy Information Administration. Read the full story here.

"The Chickens come home to roost".Gasoline and diesel oil prices in Turkey,become the highest in the world.

"The Chickens come home to roost".Gasoline and diesel oil prices in Turkey,become the highest in the world.(HD).Gasoline and diesel oil prices in Turkey, the highest in the world, have hit another record high. As of Thursday, the price had hit 2.68 US dollars per liter. (Almost $10/Gallon).The gasoline itself costs only 1 US dollar per liter, but taxes make up 60% of the cost at the pump.Turkish consumers have woken up to a costlier life in April, with the Minister of Energy announcing that natural gas prices have been raised by a staggering 18.7 percent, while electricity prices also increased about 9.3 percent over the weekend. The natural gas and electricity price hikes come just after gasoline prices rose for the third time late last month, putting the cost of one liter of gas at nearly 5 Turkish Liras.
“There is a cost increase of about 17 percent in natural gas due only to changes in the exchange rate. In the last 19 months oil and natural gas prices have risen 29 percent, excluding the exchange rate. The reason for the latest price increase is the difference in the exchange rate and rising oil prices,” Minister of Energy Taner Yıldız said, speaking in the central Anatolian province of Kayseri March 31, according to Doğan news agency. “The government used to purchase [one barrel of] oil for $22 ten years ago, now it cannot purchase one even for $122. Energy costs are up six-fold versus a gross domestic product growth of three-fold,” he said.Turkey produces nearly half of its electricity from natural gas power plants. The energy sector pays the price for political instability caused by tensions in North Africa, Syria, and between Israel and Iran, Yıldız said yesterday. Turkey is in talks with the Libyan government to arrange a goods-for-oil barter, Anatolia news agency quoted him as saying. “We will construct buildings in exchange for petroleum coke,” he said. Citizens pay the price while the government manages the economy with price hikes, Kemal Kılıçdaroğlu, the head of the main opposition Republican People’s Party (CHP) said yesterday, speaking in the northwestern province of Eskişehir. “They used to say ‘Turkey sets an example to the whole world,’ and ‘there is no problem with the economy.’ What kind of an example is this?Hmmmm.......Anyone has an idea why Turkey is eyeing the Nobel Gas field near Cyprus?Would it be worthwhile to go to War?Read the full story here.