Iran doesn’t back or oppose production cap

Iran’s oil minister Bijan Zanganeh said today that Iran backs action to stabilise the oil market but made no commitment to capping production.

“We look forward to the beginning of co-operation between Opec and non-Opec countries and we support any measure that can stabilise the market and increase prices,” Zanganeh was quoted as saying by the Shana newsagency.

But he did not give any explicit promises that Iran would keep its own output at January’s levels.

Zaganeh was speaking following a meeting in Tehran with his counterparts from Iraq, Qatar and Venezuela. The visiting oil minsters left without comment following the meeting.

The meeting followed a deal reached on Tuesday between Saudi Arabia and Russia, the world’s top two producers and exporters, to freeze production at January levels if other big oil nations agree to join.

Mehdi Asali was quoted in Iranian newspaper Shargh earlier on Wednesday that Iran would continue to increase oil production until it reached pre-sanction levels.

“Asking Iran to freeze its oil production level is illogical,” he said. “When Iran was under sanctions, some countries raised their output and they caused the drop in oil prices.

“How can they expect Iran to co-operate now and pay the price?” He said.

Iran was producing around 4.4 million barrels a day. In mid-January 2016, it was producing 2.8 million barrels per day.