Iran refuses proposed by Russia to the freezing of oil production

Iran has stated that he sees no logic in limiting the level of oil production and does not intend to accede to the agreement, signed Tuesday in Doha (Qatar) representatives of Russia and the three countries of OPEC, reports on 17 February 2016 with reference to Reuters.

According to officials, responsible for interaction with Iran, OPEC, other countries increased the level of oil production, while Tehran has been under sanctions of the West. Now that these sanctions are revoked, Iran stremitsya only to increase the level of production.

Subsequently, the Agency verified that Iran can offer some «special conditions» to attract to an agreement about freezing of oil production.

Two non-Iranian source close to the discussions in OPEC, told Reuters that «Iran needs to give a chance, but need to resort to some calculations».

The sources did not specify what might be «special conditions». According to the Agency, it may be deemed consent to a limited increase in production by Iran and linking output growth with a future recovery in oil prices.

Some other members of the oil cartel have already voiced support of the agreement. In particular, readiness to accede to freeze the level of oil production, formally announced the Iraq, Kuwait and the UAE.

According to the Ministry of oil country Kuwait to secure the oil production level at the current level of 3 million barrels per day. However, it will do this only if the agreement will be implemented with the participation of all members of OPEC.

Recall that the freezing of oil production at the level of January of this year before agreed Russia, Saudi Arabia, Qatar and Venezuela. Together, these countries produce approximately a quarter of all world reserves. The purpose of the agreement is considered to be improving steadily falling oil prices.

However, the day before 15 fevralya — Iran only sent to the EU first, after years of sanctions, the tanker with its own oil.

The main initiator of this agreement is Putin’s Russia trying thus to save them from collapse its own economy. This proposal immediately attracted active support from traditional partner of the Kremlin, socialist Venezuela, which is now due to incredibly low prices for oil almost on the verge of default.

However, contrary to expectations, this caused no increase of oil prices and their decline. Markets reacted skeptically to the results of the Doha meeting, as the participants will have to negotiate with another 10 countries.

Russian energy Minister Alexander Novak said that the agreement will happen, «if other manufacturers will join this initiative».

Iran refuses proposed by Russia to the freezing of oil production 18.02.2016

Февраль 18th, 2016 by
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