Posted on 04/10/2015 10:11:49 AM PDT by thackney
OPEC's strategy of holding output steady is not working and the group's members should discuss production levels before its next meeting in June, Iran's oil minister said, a sign of the pain lower prices are causing OPEC's less wealthy producers.
However, Bijan Zanganeh also told Reuters it was up to other members of the Organization of the Petroleum Exporting Countries (OPEC) to make way for any extra Iranian crude that reaches world markets if Western sanctions on Tehran are lifted.
Oil prices have halved from the $115-a-barrel level hit last June, in a drop that deepened after OPEC refused to cut output, choosing instead to defend market share. Top exporter Saudi Arabia was the driving force behind the policy shift.
"It seems (OPEC's strategy of not cutting output) does not work well, because prices are coming down," Zanganeh told Reuters on Thursday during a visit to Beijing. "We haven't witnessed stable situations on the market."
Iran was among the OPEC members that wanted an output cut at OPEC's last meeting, in November. But the Gulf OPEC members, who account for more than half of the group's output, refused to cut without the participation of non-OPEC producers....
OPEC, which pumps one third of the world's oil, may soon have to deal with an increase in supply from Iran if Western sanctions over its nuclear programme are lifted.
The group will be able to "coordinate itself" to accommodate Iran's return without causing a price crash, said Zanganeh, who was making his first visit to Beijing since taking on his current role two years ago.
(Excerpt) Read more at rigzone.com ...
In translation: "Iran tells Saudi Arabia it needs to cut production to make way for new Iranian oil." Obviously new Iranian oil exports will produce additional profits for Iran. They want to maximize those profits by having the Saudis cut production. When Iran has operational nukes, they might threaten the Saudis with a nuclear strike to get them to cut production. And that is why Obama's acquiescence to Iranian nukes might be storing up trouble.
Interesting chart.
Apparently OPEC oil production started many decades before OPEC existed.
I assume they're referring to historical production from existing member countries before the organization came into being.
I am sure you are correct. It just seemed silly to chart production back that far in time.
Actually, I thought it was very useful. The key part of that chart was the 73-74 time frame, when the two lines crossed for a time, and oil prices went to the moon, relative to where they were.
But from before 1960?
That's actually the more useful part of the chart. It shows us that OPEC producer dominance is relatively recent, and provides a great overview for further research into various oil market-related theses.
It is misleading info by itself.
Cheers
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