Iran violates the quadripartite agreement undermine the stability of the oil market

Wednesday February 17, 2016 AD


As expected, reactions from Iran came to freeze production at Doha negative agreement, persistently Tehran to increase production and lack of commitment to the outcome of the Quartet meeting, which comes Iranian undermining the position of any step towards the stability of the oil market and out of prices declining as announced by Iranian Oil Minister crisis "that his country does not intend to reduce its oil output, but they are" ready to talk "with other oil-producing countries and that the announcement of the meeting will be held on Wednesday in Tehran with Iraqi and Venezuelan counterparts."

At the same time, Reuters quoted "Today, Iran's OPEC governor was quoted as telling the newspaper East on Wednesday that Iran would continue to increase production to reach the level of production before the imposition of international sanctions over its nuclear program.

The delegate said the newspaper "demand that Iran freeze its production level is a logical ... when Iran was subject to sanctions, some countries raised their production and caused the fall in oil prices ... how can it now expects Iran to cooperate and pay the price?".

"We have said repeatedly that Iran will raise oil production to be up to the level before the sanctions."

The price of oil has fallen about four percent, giving up early gains after Russia and Saudi Arabia squandered the largest oil producers in the world outlook cut to explicitly shown only when it agreed to freeze production, provided the participation of other major exporters. Benchmark Brent prices jumped briefly above $ 35 a barrel after Russia and Saudi Arabia have agreed to keep production at January levels, in what could become the first joint agreement between producers inside and outside OPEC in 15 years.

He said Qatar's Energy Minister Mohammed Bin Saleh Al-Sada said the move will help bring stability to the oil market with Btrajat a price not seen since the beginning of the last decade due to oversupply.

On the other hand, traders said, citing data released by Zhinskab market data that stocks in the delivery point for US crude Bkashenj decades in the state of Oklahoma has risen about 705 thousand barrels for the week ending February 12.

Under the proposal could lead to the first global agreement 15 years ago on oil production would freeze top producers when their production in January 2016 levels.

And the long time-longer-oil prices fell more than 70% in the last twenty months under the weight of record high production from the Organization of Petroleum Exporting Countries, states and other producers such as Russia.

Russia and Saudi Arabia agreed on Tuesday to freeze production levels at January levels, but the agreement conditional on the participation of the rest of the producers.