News / Economy

    Iran Rejects Oil Production Cap

    FILE - Iranian oil worker rides his bicycle at the Tehran's oil refinery south of the capital Tehran, Iran.
    FILE - Iranian oil worker rides his bicycle at the Tehran's oil refinery south of the capital Tehran, Iran.
    Ken Bredemeier

    Iran rejected appeals Wednesday from other oil-producing states to curb its oil exports to try to end the plunge in world crude oil prices, instead saying it intends to increase production.

    Iran's envoy to the Organization of the Petroleum Exporting Countries, Mahdi Asali, said Tehran intends to step up exports until they reach the level it had before international economic sanctions were imposed on it in an effort to force Iran to agree to a ban on its suspected development of nuclear weaponry.

    As the Iran nuclear agreement took effect last month, the sanctions were lifted and Iran says that within the next six to 12 months it intends to send another million barrels of oil a day onto the world market. That would add to the glut that has pushed prices down from $115 a barrel in mid-2014 to the current $30 range.

    Gas Prices Tumble Toward $1.00 Iran sanctions have been lifted which will wash the world with more oil.
    Gas Prices Tumble Toward $1.00 Iran sanctions have been lifted which will wash the world with more oil.

    Pre-sanction levels

    Before the sanctions took effect in 2012, Iran exported 2.5 million barrels a day, a figure that the United Nations and Western sanctions cut to about 1.1 million.

    Iranian oil officials met Wednesday in Tehran with their counterparts from Iraq, Venezuela and Qatar, discussing a plan adopted the day before by Saudi Arabia, Russia, Venezuela and Qatar to freeze their oil production at January levels on the condition that other large oil states do the same.

    But Asali rebuffed the notion that Iran should maintain its production levels.

    "These countries increased their production by 4 million barrels when Iran was under sanctions," Asali told the Shargh daily newspaper. "Now it's primarily their responsibility to help restore balance on the market. There is no reason for Iran to do so."

    He said the four countries that agreed on the oil production freeze could stabilize oil prices on their own, if they cut their production by 2 million barrels a day.

    A boy walks by an oil pump at sunset Jan. 18, 2016, in the desert oil fields of Sakhir, Bahrain.
    A boy walks by an oil pump at sunset Jan. 18, 2016, in the desert oil fields of Sakhir, Bahrain.

    Doha agreement

    Saudi oil minister Ali al-Naimi said the January production levels are "adequate," but that the agreement reached in Doha is only good if other large producers sign on as well.

    "We don't want significant gyrations in prices," Naimi said. "We don't want a reduction in supply. We want to meet demand and we want a stable oil price."

    The pact to freeze production marked a shift in Saudi oil policy. For months, as oil prices have plunged, Riyadh had refused to curb its production in an attempt to force other oil producers, especially U.S. shale oil producers, out of the market.

    But with producers across the globe pumping too much oil, coupled with some economies slowing and thus not needing as much oil to fuel their industrial production, prices continued to fall.

    That in turn has hurt oil-dependent government budgets, particularly in Russia and Venezuela. But even oil-rich Saudi Arabia, with some of the world's biggest untapped oil reserves, says it has a record budget deficit.

    The Doha meeting could be a signal that oil-producing nations, including OPEC members, might eventually agree to an outright production cut to halt the 19-month slide in prices to their lowest point in more than a decade.

    Some analysts have predicted that prices will eventually fall to at least $20 a barrel before any recovery begins.

    You May Like

    US Leaders Who Served in Vietnam War Look Back and Ahead

    In New York Times opinion piece, Secretary of State John Kerry, Senator John McCain and former Senator Bob Kerrey say as US strengthens relations with Vietnam, it is important to remember lessons learned from war

    Who Are US Allies in Fight Against Islamic State?

    There is little but opportunism keeping coalition together analysts warn — SDFs Arab militias are not united even among themselves, frequently squabble and don’t share Kurds' vision for post-Assad Syria

    Learning Foreign Language Helps US Soldiers Bridge Culture Gap

    Effective interaction with local populations part of everyday curriculum at Monterey, California, Defense Language Institute

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    Vietnamese-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora

    World Currencies

    EUR
    USD
    0.8916
    JPY
    USD
    109.40
    GBP
    USD
    0.6905
    CAD
    USD
    1.3147
    INR
    USD
    67.522

    Rates may not be current.