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Iran Prepared To Defend Old Market Share "At Any Cost"
Submitted by Andy Tully via OilPrice.com,
Iran’s oil minister says his country supports calls for an emergency OPEC meeting to explore ways to shore up the price of oil, but even without such an effort, Tehran is willing to regain its market share “at any cost.”
Iran once was OPEC’s second-leading producer, after Saudi Arabia, but output has plunged since 2012, when international sanctions forbade any country or energy company to buy, ship, finance and insure its crude because of Tehran’s nuclear program. In 2011, Iran’s output was 3.7 million barrels per day. With the sanctions, production dropped to 1.2 million barrels per day.
Iran and six world powers – Britain, China, France, Germany, Russia and the United States – reached an agreement in July on controlling that program and lifting the sanctions, probably by early 2016. Oil Minister Bijan Zanganeh has said repeatedly that his country can quickly boost production by more than 1 million barrels per day within a month after the sanctions are lifted.
This could further depress the price of oil, which has dropped precipitously since summer 2014. Already there is a glut of oil, and OPEC members lately have been producing at near-record levels. The group already is exceeding its output cap of 30 million barrels a day by at least 1.5 million barrels per day. Once Iran returns to the market, the price probably will fall further.
So be it, Zanganeh said in Tehran on Aug. 23. “We will be raising our oil production at any cost and we have no other alternative,” he was quoted by his ministry’s website, Shana. “If Iran’s oil production hike is not done promptly, we will be losing our market share permanently.”
But Zanganeh also said he was aware that his country’s return to the world oil market could further weaken prices, and declared Tehran's support of a call for OPEC to hold an extraordinary meeting to discuss ways to stabilize oil’s price. The cartel’s next scheduled meeting will be Dec. 4.
“If [such a meeting meeting] is convened, it will have an impact on oil prices,” the minister said. “The urgent meeting must be held with all OPEC members in attendance. It is only through such consensus that one can say all members have decided to reach results.”
But Zanganeh said he has little hope that such a meeting will take place because of opposition by at least one member that is using low oil prices as a weapon in its own war to reclaim OPEC’s market share from non-OPEC producers, especially shale oil producers in North America.
“I find it unlikely that some countries with political agendas to reduce oil prices would agree to this meeting,” Zanganeh said. He didn’t specify the country, but clearly was referring to Iran’s arch-rival, Saudi Arabia.
At OPEC’s meeting in Vienna last fall, Saudi Oil Minister Ali al-Naimi used his country’s influence to persuade its 11 fellow members to keep crude production at 30 million barrels a day, rather than limit production to bolster oil’s price.
Low prices put pressure on oil producers in America, who helped create the current oil glut by using hydraulic fracturing, or fracking, to produce crude from shale. Fracking, however, is more expensive than conventional oil production, and, under al-Naimi’s strategy, depressing the price eventually could make shale production unprofitable.
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http://wp.me/p4OZ4v-2M
nuke the KSA and solve a whole heck of a lot of the world's problems
Nope. The northern half still needs to get annexed into Israhell per the Greater Israel project.
Ordo Ab Chao. A few more years of balkanizing and maybe the ziopaths will fulfill their Satanic wet-dream.
Isn't OPEC meeting to raise the price of oil by restricting the supply a violation of the Sherman Act? I am thinking North American oil could sue to prevent imports on this basis.
Heh, heh, heh, THAT would be funny as hell. Not enough popcorn in all the world.
You want market share? Try this 'always a winner' marketing campaign, BOGO. Take that OPEC.
LOL. Let's see the FED control this.
American law does not apply to soveriegn entities in general. There are trade law's they could use, but the east and especially the west coast would have some real problems if they lost mid-east oil imports.......
American Law/Sherman Act also does not apply to the Health Care Industry in the U.S.
(We can thank our congress-critters, with the "For Rent" signs hanging above their asses for that).
it's only illegal if we say it is.....
you're not wrong
http://www.ahavat-israel.com/eretz/future.php
"nuke the KSA..."
Spoken like someone who is in full denial about being an oil junkie.
Iran needs to understand that oil is abiotic not fossil and therefore available everywhere and cheap>> http://wp.me/p4OZ4v-2M
Now, do you have an actual definitive scientific proof of this, or is it still your speculation?
I think there's a good chance that there's a large amount of abiotic oil, but it still hasn't been proven.
Pump Baby, pump!
...Sorry baby, I came already
Saudi Oil Minister Ali al-Naimi used his country’s influence to persuade its 11 fellow members to keep crude production at 30 million barrels a day
Another worthless article from Oilprice.com
OPEC is responsible for only a third of the world's oil production of 94 million barrels a day. Iran has a very small effect on world oil prices.
a 1mm bpd increase in world daily oil supply would be more than 1% of a day's production total, far from insignificant if increased production was maintained - an extra 365 mm barrels of oil into the market in one years time would most definitely effect world oil prices.
one would be hard pressed to find anyone at the big oil companies who take that website seriously.
Yes! Destroy the fucking Saudi's! Wahabist, hijacking, terrorist funding, motherfckrs.
Uh Bullshit alert. Iran needs massive capital investment and western tech transfer to make any kind of meaningful jump in producer status. Doubt the deal even gets done once everybody realizes the recent, major output from Iraq is mostly smuggled Iranian oil. Even if it does, US, CAN, and Russia will have declined by close to 2mm bbls/pd by the time shitty Iranian condensate (that no one even wants) hits markets.
Uh Bullshit alert. Iran needs massive capital investment and western tech transfer to make any kind of meaningful jump in producer status. Doubt the deal even gets done once everybody realizes the recent, major output from Iraq is mostly smuggled Iranian oil. Even if it does, US, CAN, and Russia will have declined by close to 2mm bbls/pd by the time shitty Iranian condensate (that no one even wants) hits markets.
"Market share". What exactly is "market share" in a pure commodity market? It's not like there is an Iran brand (other than maybe Ayatollahs and Hizbullah).
The concept of market share should be immaterial to a large oil exporter, with the only important consideration being how do you get best value for your finite reserves (and how do you fund your failing welfare state model). I don't even believe this shit is happening...idiots running rampant everywhere.
How long can the US shale producers stay solvent? The prices have been falling for a year now. Or is there unlimited amount of phoney digits to prop up the market long enough for OPEC to literally go bust?
Oil freighter attack in the Straights of Hormuz in 3...2...1...
so destroy the U.S. oil industry (and whatever banks are tied to the derivatives), just don't trade oil in gold or euros.
Kinda silly to build a house out of straw and then bitch about the 20mph winds knocking it over, que no?
They sure seem to be in a hurry to sell product below production costs.
Umm, OK, go for it!
$2.15/gal local East TX. We were at $1.75 some months back. Bring back dollar gasoline!
The real joke is the oil is about to run out.
dt
Are these the type of thing that has caused Russia/Putin to allow Iraq, Libya and Syria to be destroyed. And to keep Iran hanging without any real support. Russia even consented to the sanctions against Iran.
More profits for the Russian elite in the short term. Lack of vision or not caring about Russia in general on the long term.
Decrease oil production has been good for russia.
Let's just get it on already: Iran vs. Kingdom of Sodomy Arabia. Enough of this proxy shit.
"Iran is a terrorist state" said USA
(becuz earlier they refused to sell oil in dollah, but accepting Euros)
The oil produing countries must understand that they have a great power over America if they refuse to sell in US Dollar. Then there will be no demand for US dollar, little trading in US dollar, and when countries holding US treasuries sell it all, market will be flooded with US dollar which less people willing to buy. The dollar will crash, American economy will crash.
You muslim countries need not send airplanes to hit like WTC , no need for 9/11 , you can remote control the crash of US economy, death of Satan America , shatter it to dust.
And while countries like China have started dumping US treasuries (the dollar)
THE TIME IS NOW
STOP TRADING IN DOLLAR