Global oil market will maintain its equilibrium even after Iran would have raised its crude exports, Iran’s national representative in OPEC said.
“Doubtlessly, the market will continue to remain balanced [event] after Iran’s return,” Mehdi Assali told Shana.
Iran is expected to increase its oil exports after international sanctions are lifted. The country is in talks with six world powers with a view to having sanctions relieved in return for limits on its nuclear program.
Assail said Iran’s 11 fellow member states of the Organization of the Petroleum Exporting Countries have realized that they “will have to cut their production so that Iran’s return would not cause a drop in the prices.”
“These countries are well aware that if they refuse to accept Iran’s proposal OPEC will become an ineffective organization,” he said.
Assail said OPEC has already experienced similar conditions following the Iraqi invasion of Kuwait in the 1990s.
“When Iraq invaded Kuwait, oil production by these two countries stopped and OPEC member states increased their production so that the market would not face any disruption. But after their war ended they resumed their production and the countries that had taken Iraq and Kuwait market cut their production to let Iraq and Kuwait in. Therefore, Iran has filed no unacceptable request,” he added.