Zangeneh's Reaction to Oil Agreement in Doha: We Will Not Give Up Our Share

Hours after the news of the agreement between Russia and Saudi Arabia on Tuesday, February 16, regarding maintaining their current oil production levels, Iran's Minister of Oil emphasized that Iran is determined to increase its production and will not give up its market share. Reuters reported on Tuesday that the oil ministers of Saudi Arabia, Qatar, Russia, and Venezuela, in a meeting in Doha, which Iran notably missed, proposed an agreement to combat the oversupply of crude oil in the market and to increase its price. Current prices in the global oil market are at their lowest in the past decade. Ali al-Naimi, the Saudi oil minister, stated on Tuesday that halting production at the January level, which was close to the highest level, was an appropriate measure. He also expressed hope that other oil producers would implement this plan. Eulogio del Pino, the Venezuelan oil minister, mentioned that negotiations with Iran and Iraq regarding this matter would take place on Wednesday in Tehran. Mr. Naimi told reporters, "The reason we agreed on stabilizing production is simple: this is the beginning of a process that we will evaluate in the coming months, and if necessary, we will take further steps to improve and stabilize the market." In this context, Emmanuel Ibe Kachikwu, Nigeria's oil minister, recently reported to Reuters about a consensus among OPEC members regarding decisions to curb the price decline. Meanwhile, Iran, a regional rival of Saudi Arabia, has announced that it will significantly increase its oil production in the coming months to regain lost market share due to international sanctions. According to Mohammed Saleh Al-Sada, the Qatari oil minister, "Other producers including Iran and Iraq must immediately halt their production increase plans. We believe this action signifies market stability." The Doha meeting took place 18 months after the beginning of a continuous decline in oil prices, a trend that has caused oil prices to drop below $30 per barrel for the first time in a decade, down from $115 per barrel in mid-2014. Saudi Arabia insists it will only reduce its production when other OPEC and non-OPEC producers join in. Meanwhile, Iran has stated that it will add one million barrels to its production this year. In response to the Russia-Saudi agreement, Bijan Zangeneh, Iran's oil minister, declared on Tuesday, February 16, that Iran will not overlook restoring its share in global markets. Before sanctions, Iran exported 2.2 million barrels of oil daily, but during sanctions, this figure fell to about one million barrels. Reports indicate that after the implementation of the JCPOA, this amount has increased to 1.3 to 1.4 million barrels. According to Shana news agency, Mr. Zangeneh stated, "As reported, and I still do not have definitive results, there was discussion about stabilizing the production ceiling at this meeting, which is a matter for discussion and review, and we must see what they intend." According to Mr. Zangeneh, what is important is that "first, the oil market is currently facing an oversupply, and second, Iran will not give up its share." Venezuela has suffered the most from the decline in crude oil prices, and oil below $30 per barrel has also impacted Russia's budget balance. Saudi Arabia's economy has also been severely affected by the declining oil prices, experiencing a $98 billion budget deficit last year.