Zangeneh: We Will Increase Oil Exports Even If Prices Halve

Iran's oil minister states that Tehran has not given up its share among oil sellers in OPEC and will increase exports even if oil prices drop to half of their current level. Bijan Namdar Zangeneh mentioned that Iran's share in OPEC is a 'historical share' that must be returned to the country and is considered one of its 'vital parameters.' On the night of September 4, during a state television program, Zangeneh said, 'If our exports double and the price (of oil) is halved, we have no problem; because we have become accustomed to low prices and have lived with resilience, and others should be worried.' The Iranian oil minister accused some other members of OPEC of not seeking to increase oil prices in global markets, as they intend to 'harm other members.' Zangeneh did not directly name the countries he was referring to. Saudi Arabia, the most important and largest oil producer in OPEC, has currently significantly increased its extraction and export of oil, which, along with issues like market saturation or the slowing economic trend in China, are among the reasons for the decline in oil prices. At the same time, the oil minister stated that new estimates show that the shared oil fields 'Yadavaran, Azadegan, and Yaran' hold 31 billion barrels, nearly three times more than the initial estimates of 13 million. Zangeneh's latest statements continue the remarks of Iranian officials regarding the increase in the country's oil production and exports following the lifting of international sanctions. Global sanctions have significantly reduced Iran's oil exports. The Iranian oil minister, one day before this recent interview, stated in a press conference that due to the significant drop in oil prices in recent years, there is currently no money for investment in Iran's oil industry. The price of OPEC oil has currently reached around $40 per barrel. Oil prices reached $145 at some point in 2008. While oil prices were at their peak, during Mahmoud Ahmadinejad's presidency, Iran's nuclear file went to the UN Security Council, which ultimately led to international and unilateral sanctions. Iran and six world powers reached an agreement on July 14, which is a comprehensive action plan for controlling and verifying the peaceful nature of Iran's nuclear program in exchange for lifting sanctions. In this context, the post-sanction era and attracting foreign direct investment have been affected by the lack of 'sufficient resources' for investment in the oil industry. The price of OPEC oil has dropped to $40; the ongoing power struggle between Iran and Saudi Arabia continues.