Impact of Agreement Among Four Major Oil-Exporting Countries on Oil Prices

On Tuesday, February 15, the oil ministers of Saudi Arabia, Qatar, Russia, and Venezuela met in Doha, with Iran notably absent, to reach an agreement aimed at countering the oversupply of crude oil in the market and increasing its price. Ali al-Naimi, the Saudi oil minister, expressed hope that other oil producers would join this initiative. Oil prices have faced significant fluctuations over the past decade, but a downward trend began in August 2013, dropping from $109 per barrel at that time to below $30 per barrel currently. Provez Mina, an oil expert in Paris, stated to Radio Farda that the significance of this agreement can only mean that oil-producing countries will reduce their output to compensate for the increased supply from Iran. Hours after the news of this agreement was released, the Iranian oil minister emphasized that Iran is determined to increase its production and will not relinquish its market share. The current policy direction of Iran, unlike in previous decades which focused on reducing oil supply and maintaining high prices in global markets, is now based on increasing the supply of this raw material. Ali Rashidi, an economic expert in Tehran, told Radio Farda that Iran's policy should be evaluated beyond supply and demand, as years of sanctions and Iran's urgent need for foreign currency leave it with no other option. Bijan Namdar Zangeneh, the Iranian oil minister, stated last summer, on the verge of reaching a nuclear agreement, that Iran has the capacity to increase its oil exports. On Tuesday, the IRNA news agency quoted the Venezuelan oil minister as saying that he, along with the Iraqi oil minister, would meet and discuss with the Iranian oil minister in Tehran on Wednesday. Before the sanctions, Iran exported 2.2 million barrels of oil daily, but during the sanctions, this amount fell to about one million barrels, and reports indicate that after the implementation of the JCPOA, this figure has increased to 1.3 to 1.4 million barrels.