Referring to the OPEC decision of 1.2 million barrels per day cut in the production, Zangeneh added, "… OPEC decided to 1.2 million cut in the output."
He said, "Iran was allowed within the next six months, which is the period the decision is in force, to add 90,000 barrels on the average to its production from the reference production level, i.e. the October production, per reference statistics available by the secondary sources; this means that we can add to our production in the final months much more than the figure because production might not increase in the initial months."
The minister added, "Based on the estimates availed to us, Iran will in fact have no limitation for increase in the production until early next year. This is a good success for Iran. Regarding the fact that we will have about one billion barrels of crude and gas condensate exports and the least estimates is addition of about 10 dollars to the oil price, I think God willing the decision will earn us about 10 billion dollars income."
"As you know, market has shown swift reaction (to the decision); though no supply to the market has yet been diminished; However, the futures market and its expectations improved the current market conditions. Today, I was told Brent crude was sold for about 53 dollars a barrel, while it was about 46 dollars yesterday. This is a big figure which has been added and I pray God Almighty it will be stabilized. Also for the first ever, the decision was made through cooperation on the non-OPEC side; I think it is important. I wish to add one more point that is also important. I announced in the meeting of the OPEC oil and energy ministers yesterday and was welcomed by them. That's an issue which the market should know and it is more important than writing figures relating to the output cut. It is the spirit of cooperation inside OPEC."
To a question on the short-term impact of the OPEC decision, Zangeneh said, "Majority of the OPEC states consider 55 to 60 dollars as the suitable price for each barrel of the OPEC basket of crude."
Also asked for the prospect of the OPEC decision, he said, "That's what it is because OPEC plans are short-term in nature and are not for a long period of time."
