Iran should be allowed to recover market share, Russian energy minister says

Iran should be given an exemption from an agreement between the world’s major oil producers to freeze their current level of output so that it can increase its share of the market, Russia’s energy minister said on Monday.

Following a meeting with Iranian Petroleum Minister Bijan Zangeneh, on Monday, his Russian peer said “major oil producers shall coordinate with each other. However, since Iran’s production decreased under sanctions, we totally understand Iran’s position to increase production and revive its share in the global markets,” Iranian state-owned newswire Shana reported.

“Within the framework of major oil producers (OPEC and non-OPEC), Iran is liable to have an exclusive way for increasing its oil production.”

As of 14:08 front month Brent crude oil futures were trading 3.83% lower to $38.90 per barrel on the ICE, with those for West Texas Intermediate off by another 4.34% to $36.90.

Tehran confirmed on Sunday it will freeze oil production only when it reaches 4m barrels a day, meaning it it intends to increase, not hold production from the current level of around 2.8m barrels per day.

"I have already announced my view regarding the oil freeze and I'm saying now that as long as we have not reached four million barrels per day in production, they should leave us alone,” said Zanganeh.

“When we reach this level of production, we can then cooperate with them,” he added, referring to Russia and Saudi Arabia.

On Friday, 11 March the International Energy Agency said Iranian exports had not risen as quickly as Tehran had hoped following the lifting of nuclear sanctions on the country.

After Monday’s meeting Zangeneh expressed his hope that the Russian Federation might help develop Iran’s oil and gas sector and that both countries might cooperate through the use of oil and gas swaps.

The Organisation for Petroleum Exporting Countries was scheduled to release its monthly oil market report on the same day, at 15:00 GMT.