Deputy Oil Minister Roknoddin Javadi said on Saturday that since oil is produced at low cost in Iran, its continued falling price will not cause any problem on the way of its exports.
Javadi said that after removal of sanctions, Iran will regain its share in the world oil markets.
He said OPEC members’ non-cooperation is feared to lead to continued falling prices on the markets.
He noted that the OPEC members should produce crude within the framework of their specified quotas because after lift of sanctions, Iran will start increasing its crude output.
‘We are ready to increase daily crude production capacity one week after lift of sanctions and after six months, adding half a million more barrels to the production and export capacity,’ he said.
To a question whether the oil market can absorb such an increase in exports, he said if the OPEC members adhere to their quotas, the oil market worldwide will appeal for it.
Asked how Iran would regain its quota with regards to the ongoing oversupply governing the market, he said, ‘Now agreements have been reached with the purchasers on selling our crude and possibly in case of refusal of the OPEC members, the oil price will continue to fall.’
He believed that ending the ban on US crude exports and in general increase in the supply in the world markets would affect more the countries which produce oil at high costs.
As for impact of Daesh terrorists’ oil sale at low prices, he said based on the media information, the sale is not at a level to affect the market and it is unlikely that it would play a major role in this concern.
Prior to intensification of sanctions Iran used to export more than two million barrels of crude a day but now the exports have reached one million barrels per day.
Petroleum Ministry has over the past weeks ordered the oil producing companies to be ready for increasing the production and the exports after lift of sanctions.