Iran Committed to OPEC’s Oil Output Freeze: Iranian Ambassador to Oman

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A day after Iranian oil minister ridiculed OPEC's decision to freeze oil output, Iran's ambassador to Oman announced his country commitment to upholding OPEC's decision. REUTERS/Morteza Nikoubazl/Files

By Leila Hatoum

Muscat (Newsweek Middle East)– A day after Iran’s Oil Minister Bijan Namdar Zanganeh ridiculed a decision by the Organization of the Oil Petroleum Exporting Countries (OPEC) to freeze oil output, the Islamic Republic’s Ambassador to Oman said his country “is committed to OPEC’s oil output freeze decision.”

Speaking on the sidelines of Iran’s Capital Market Roadshow in Muscat on Wednesday, Ali Akbar Sibeveh said his country is working with OPEC in favor of the oil market.

“It is in everyone’s best interest if the oil market flourishes,” Sibeveh told Newsweek Middle East following his speech at ‘How to Invest in Iran’ conference.

Zanganeh had slammed the idea of Iran freezing its crude production to 1 million barrels a day, while hinting that Saudi Arabia produces over 10 million barrels of oil per day.
“It is a joke that they tell us they would freeze their production above 10 million barrels per day and that we should freeze our production at one million,” Zanganeh was quoted as saying by Iran’s press TV.

OPEC’s Chief Abdullah Salem El Badri had told reporters earlier this week that both Iran and Iraq didn’t refuse to join the production freeze –  albeit Saudi Arabia’s oil minister Ali Al Naimi had been playing down the possibility of having a coordinated effort among all oil exporters with regards to freezing their production at current levels – saying some may not deliver.

Oil prices dropped on Wednesday, following speculation that some oil producers won’t commit to freezing their production level. WTI prices were trading lower on Wednesday dropping by over 1 percent during Wednesday’s trading to around $30.87 per barrel, much like Brent which was trading lower, closer to $32.5 per barrel.

 

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