Iranian oil minister: 'Others' should be worried about oil prices
Iran's oil minister has said the ministry would welcome an emergency OPEC meeting, but that Iran will not limit its oil production to retain its share of the oil market.
Iran’s Oil Minister Bijan Namdar Zanganeh spoke to Iranian television the night of Aug. 26 about the importance of not losing the country’s share of the oil market given the price drop and a new arrangement that will force investors to work with Iranian companies in the country's outdated oil industry.
“With all of our strength we have to put the oppressive [sanctions] on us to the side because protecting Iran’s share in OPEC and the world markets is our vital parameter,” said Zanganeh, adding, “If our exports double and the price drops in half, we don’t have a problem because we’re accustomed to living and resistance with low prices, and it is others who should be worried.”
The last comments made headlines in the Iranian media because they appeared to be directed toward other OPEC members. Iran’s regional rival Saudi Arabia has refused calls to cut oil production that would push prices back up. The price of oil is now the lowest in six years. It peaked at $115 in June 2014 and is now around $40 per barrel. The drop in oil prices has put a strain on the budgets of oil-producing countries, with even Saudi Arabia to run a budget deficit of $150 billion.
Whether Saudi Arabia refuses to cut oil production to hurt its geopolitical rival in the lead-up to the removal of international sanctions or if its refusal is meant to make investment in American shale gas unprofitable, the decision has upset Iran. Zanganeh said there has been a request for OPEC members to hold an emergency meeting, but added that all 13 members must agree to do so for it to happen.
