Iran Rebukes Saudi Arabia ahead of OPEC Meeting. (IFP).
“Naturally, if a country wants to produce at full capacity, there
will be no balance in the market,” Deputy Petroleum Minister for Trade
and International Affairs Amir Hossein Zamaninia said late Saturday.
The official did not name a country, but his comments were apparently
directed at Saudi Arabia which recently backed out of an agreement with
Russia and other countries to freeze crude production.
Riyadh has been insisting that all countries join the freeze
initiative, singling out Iran which has been ramping up production to
redeem its lost market share after the lifting of Western sanctions.
Zamaninia stressed that Iran is ready for cooperation but that it has
to return to former production levels first.
“Iran can cooperate in
this regard when it returns to the (market) share before the sanctions.”
Reviving Quota System.
He said OPEC countries need to find a way to revive the quota system
which Saudi Arabia scuppered in December 2011 and introduced an output
ceiling of 30 million barrels per day (bpd).
His remarks to reporters came after Algerian Energy Minister
Nouredine Bouterfa met with Iran’s Minister of Petroleum Bijan Zanganeh
in Tehran. Bouterfa has travelled to Iran ahead of an OPEC meeting on
the sidelines of the International Energy Forum (IEF), which groups
producers and consumers, in Algeria on Sept. 26-28.
Zamaninia said 90% of Algeria’s budget depends on oil and gas
revenues, but that lower prices have extremely put the North African
country’s finances under strain.
He said Bouterfa had made some proposals to strike a balance in the oil market in order to prop up prices in a reasonable way.
Speaking to reporters after his meeting with Zanganeh,
the Algerian
energy minister said a crude oil price of $50 per barrel is “not
acceptable.”
“OPEC members are trying to reach a price of $50 to $60 per barrel
and we have made a request for reaching consensus on a price and
coordination among OPEC members in this regard,” Bouterfa said.
The Algerian minister said conditions were ready for reaching
consensus on a price in the next OPEC meeting which all members will
attend and the outcome will be “positive.”
Bouterfa said Iran’s participation in the next meeting was important
even as he did not say whether the Islamic Republic would accept other
members’ views about production and prices.
“This depends on Iran’s view. How much consensus would be there, I
cannot answer this question and you must ask this from Iranian
officials,” he told reporters.
Putin’s Compromise on Iran.
On Friday, Russian President Vladimir Putin was quoted as saying that
a potential oil output freeze deal among oil-exporting countries should
involve some compromise on Iran’s production levels.
“I think that from the point of view of economic expediency and
logic, it would be right to find some sort of compromise” on the Iranian
output level, Putin told Bloomberg.
He said countries now recognize that Iran should be allowed to
continue raising production as sanctions have been lifted against the
country.
“Iran is starting from a very low position, connected with the
well-known sanctions in relation to this country,” the Russian president
said, adding, “It would be unfair to leave it on this sanctioned
level.”
Global oil prices have seen a fall from a high of 147 dollars a barrel to a low of around 25 dollars in recent years.
Putin held Saudi Arabia responsible for failed attempts by OPEC and
non-OPEC oil exporters to reach a pact on stabilizing production levels.
“It wasn’t us who rejected a freeze on production volumes, it was our
Saudi partners who at the last minute changed their point of view and
decided to take a time out in taking this decision,” Putin said,
referring to a deal reached in Qatar in April.