Managing Director of National Iranian Oil Company (NIOC) said Tehran has reached agreements with buyers of its crude oil over signing of contracts after removal of sanctions adding that continued drop in oil prices will not hamper Iran’s exports.
“Iran will win back its global market quota in the post-sanctions era. Lack of cooperation by OPEC members can lead to further decline in global oil price,” Rokneddin Javadi told Shana.
He urged OPEC members to keep their production within the slated quota because Iran will increase its production after lifting of sanctions. “As I announced earlier, we are ready to increase export for 500 barrels a day and in less than six months will expand it above 2 million barrels.”
To a question on whether oil market can take in addition of Iran’s increase, he replied, “The global market can digest it provided that OPEC members commit themselves to their quotas.”
“We have reached agreements with the customers to sell our oil,” he added, “It is likely that with OPEC members’ lack of cooperation, oil prices will be negatively affected and drop further.”
When asked whether current trend of falling oil prices can affect Iran’s export of oil, Javadi said, “Due to low production cost of oil in Iran, the dropping oil prices will not hamper oil exports of our country.”
“US lifting ban on oil export and increased supply in the global market can affect those countries in which oil is produced with higher finished cost,”
He ruled out that smuggling oil by Daesh terrorist group can further lower oil prices as its quantity is not as sizeable as disturbing the market.
“It is unlikely,” said NIOC managing director.