News ID: 3839046 -
Oil min.:

‘Non-political attitude called forth OPEC deal’

TEHRAN, Dec. 03 (MNA) – Iran’s Oil Minister Zanganeh said proper understanding of the oil market and absence of political approaches gave rise to the freeze deal reached by OPEC on Wednesday.

In a telephone conversation with a live IRIB program, Bijan Zanganeh reviewed causes of Iran’s success in the 171st meeting of the Organization of the Petroleum Exporting Countries (OPEC) saying “as I had emphasized prior to the meeting, we would arrive at a conclusion very quickly with an economic mindset dominating the OPEC ministerial meeting but if they were going to let politics decide for the meeting, it would be very difficult to reach an agreement.”

“Fortunately, despite certain disagreements and rivalries, we were able to reach a fruitful result the cornerstone of which had been laid earlier in Algeria on September 28,” he continued.

He went on to underlined that, prior to the Wednesday summit, Russia had never joined hands with OPEC members during summits.

The official also noted that with tenacity and logical positions, favorable results were obtained as Iran will not only be exempted from the reduction plan, but also it will boost crude exports.

“There will exist no restriction on Iran’s production until the end of June 2017,” highlighted oil minister adding “Russia has also agreed to reduce the volume of its production by 100 thousand barrels per day.”

Zanganeh, while pointing to the rise in global crude prices as a result of the OPEC deal, said “in the past two days, the upsurge in oil prices has been larger than expectations and each barrel of OPEC oil is now being sold at $45.50 though the figure will hopefully climb up further in the weeks to come.”

In response to a question on why Saudi Arabia agreed with the issue despite its earlier touch stances, the senior oil official asserted “negotiator’s power remains as the most decisive factor affecting international equations.”

He further defined power as production capacity commenting that Iran has been urging all competing sides to accept realities; “everyone felt the need for reaching an understanding, similarly; Saudi Arabia was in a pressing need for higher oil prices.”

Additionally, Iran follows tenets of Resistance Economy and is different from many countries who merely rely on oil revenues, maintained Zanganeh concluding “Saudis, also, woke up to realities and their interest in higher crude prices gave way to a successful agreement.”

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