Zangeneh: There Are No Red Lines in OPEC for Oil Production Cuts

Iran's Minister of Oil states that with the lifting of Western sanctions against Iran, there is a possibility to 'strengthen' oil prices in the global market, and the trend of global oil prices will become 'reasonable and logical.' Bijan Zangeneh, in an interview with Mehr News Agency on Friday, February 3, stated that 'there are no red lines' in OPEC for reducing oil production. Oil prices in global markets have lost half of their value since last summer, with West Texas Intermediate and Brent crude prices falling below $50. The price of the OPEC oil basket fluctuates between $40 and $45, which includes Iran's heavy crude oil. The Iranian oil minister emphasized that 'with the lifting of sanctions on Iran, there is a possibility to strengthen oil prices in the global market.' According to Mr. Zangeneh, the situation of oil prices in the global market will find a 'desirable and logical' trend with the lifting of Iran's oil sanctions. The oil minister did not provide an explanation regarding the reasons for the increase in oil prices after the potential lifting of sanctions on Iran. Bijan Zangeneh also mentioned that if oil prices drop to $25, it would not be a problem. His remarks come as some officials of the Islamic Republic have previously stated that the drop in oil prices is a strategy to pressure Iran in nuclear negotiations with the 1+5 group. Massoud Mir Kazemi, former oil minister and member of the Energy Commission of Parliament, stated on Sunday, January 14, that the U.S. manages the oil market and has lowered oil prices to increase pressure on Iran in nuclear negotiations with the 1+5 group. Ali Tayebnia, Iran's Minister of Economy, also said on Thursday, January 25, that 'the enemy has created such conditions to pressure Iran by lowering oil prices.' This plan does not intend to impose new sanctions on Iran during the negotiations. Mohsen Rezaei, Secretary of the Expediency Council, also stated on Sunday, January 21, that if the drop in oil prices continues for the next three years, Iran's oil revenues will decrease by 'one hundred billion dollars.' In another part of his remarks on Friday, the oil minister stated that according to the ministry's plan, Iran's gas production capacity should increase to about 100 million cubic meters per day this year. Iranian media have reported that one of the government's plans to reduce dependence on oil revenues is to increase gas production and exports. Iran has contracts to export 45 million cubic meters of gas daily to Iraq, 33 million to Pakistan, and a memorandum of understanding for the export of 27 million cubic meters of gas to Oman. Iran exports about 25 million cubic meters of gas to Turkey and purchases the same amount from Turkmenistan. Iran is the second-largest holder of natural gas reserves in the world after Russia. However, according to some reports, such as the annual report of British Petroleum, Iran has the largest gas reserves in the world with 33 trillion cubic meters.