Sunday, March 13, 2016

Iran May Consider An Oil Production Freeze...

...when its production hits 4 million barrels per day.
That means a 1mm bbl/day increase*, larger than the U.S. decline.
From Reuters:

Iran set to join oil freeze talks after output at 4 mbpd: ISNA
Oil Minister Bijan Zanganeh said Iran would join discussions between other producers about a possible freeze of oil production after its own output reached four million barrels per day (bpd), Iran's ISNA news agency reported on Sunday.
Zanganeh said Iran saw $70 per barrel as a suitable oil price, but would be satisfied with less, ISNA reported.

Asked whether Russian Energy Minister Alexander Novak would try to convince Iran to join an oil output freeze during a visit this week, Zanganeh said Iran may join the freeze after its production reaches 4 million bpd.

"They should leave us alone as long as Iran's crude oil has not reached 4 million. We will accompany them afterwards," Zanganeh was quoted as saying.

Iran has rejected freezing its output at January levels, put by OPEC secondary sources at 2.93 million barrels per day, and wants to return to much higher pre-sanctions production....MORE 
Oilprice via USA today reports the current focus is on increasing sales to India and Korea, with southern Europe to be targeted later this year.

*OPEC says Iran is currently producing 3.117 B/d while the IEA says non-Opec production will drop 750,000 barrels per day, up from their last estimate of a 600k b/d decline.