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Iran rules out oil price war after sanctions removal

14 May 2015 [16:27] - TODAY.AZ

/By AzerNews/

By Sara Rajabova

Iran’s petroleum minister has ruled out any oil price war in the market under any circumstances, should international sanctions on the country’s economy be removed.

Bijan Zangeneh said Iran will not pursue a market-share battle for the sale of its crude oil once U.S.-led sanctions on the country are lifted, Press TV reported.

He said Iran’s oil marketing and sale methods will undergo changes when international restrictions are removed.

Recently, a senior Iranian official has informed that the country will adopt a new model of oil contracts in view of attracting foreign investors.

Zangeneh said the government will follow a policy of boosting and upgrading security for the Iranian crude oil demand in the long-term.

He voiced confidence that not a single Iranian barrel would be without a customer when sanctions are lifted.

Zangeneh added that through using new marketing method and investment, Iran’s oil demand security will be raised.

Iran is keen to recover its market share lost under the U.S.-led sanctions. Iran was forced to curb its exports to around 1 million bpd from 2.5 million bpd in 2011.

The country expects to boost its output by 1 million barrels per day after a nuclear agreement is reached by the end of June.

Zangeneh has already called on the OPEC to make room for the recovered Iranian oil production which was cut by half under sanctions.

He urged all oil-producing countries to pave the way Iranian oil return to the world market.

However, economists believe that OPEC members will unlikely allow Iran to regain its market share, adding that any increase in supply from Iran would lead to a drop in oil prices.

Iran has the world's fourth largest proven oil reserves and the second biggest gas deposits. Both are seen as long under-tapped and ripe for exploration.


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