Iran Once Again Rejects Doha Agreement to Maintain Oil Production Levels

Iran's representative at OPEC reiterated Bijan Zangeneh's position regarding the agreement among the world's four largest oil producers to maintain oil production ceilings. Mehdi Asali told the Wednesday, February 17 issue of Shargh newspaper that "there is no reason for this" because "Iran has no responsibility in the current oil market situation." The four major oil exporters agreed in Doha on Tuesday to prevent further declines in global oil prices by not increasing their production. The oil ministers of Saudi Arabia, Russia, Venezuela, and Qatar also stated that they would seek to gain Iran and Iraq's agreement. However, hours after this news was released, Bijan Namdar Zangeneh, Iran's oil minister, emphasized that Iran is determined to increase its production and will not forgo its market share. Mehdi Asali, Iran's representative at OPEC, referred to the Doha agreement, stating: "When oil prices were high and we were under sanctions, these countries collectively increased their production by four million (barrels) and utilized this capacity. Now that oil prices have fallen due to increased production from these countries, they expect Iran to cooperate and bear the costs of market balance." These remarks come as the Islamic Republic of Iran refers to Venezuela and Russia as allies or friends in its foreign policy. Iran claims that due to sanctions stemming from its nuclear program, its oil production has significantly decreased and it will increase production to pre-sanction levels. Iran's current policy direction, unlike the past few decades which focused on reducing oil supply and maintaining high oil prices in global markets, is now based on increasing the supply of this raw material. The UAE, another major oil producer in the Gulf, has yet to take a position on the Doha agreement, but Kuwait has stated that it welcomes maintaining production levels. Before 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. The current oil price in global markets is at its lowest level in the past decade. Oil prices have faced many fluctuations over the past ten years, but since August 2013, a downward trend began, dropping from $109 per barrel at that time to below $30 per barrel now.