24 August 2013 - 11:42
  • News Code: 207085
Iran Set to Make Strong Return to Oil Markets

TEHRAN Aug 24 (Shana): Iran’s Petroleum Minister Bijan Namdar Zanganeh says the Islamic Republic will do its best to make a strong return to the oil markets.

“Despite challenges we are facing ahead, Iran’s oil exports will increase in the near future,” Zanganeh told Shana in an interview.

“Production capacity and output are the primary factors boosting the power of countries in the world markets. Iran’s oil production capacity must return to the 2005 level in six to seven months,” he added.

“Given the present circumstances, we are facing myriads challenges to exports, but we have to try our best to increase oil exports,” said Zanganeh.

The minister said Iran’s energy sector is open to oil producers and consumers as well as any firm willing to invest in Iran’s development projects.

“There is no limitation to that effect and we will open once more the country’s market and potentials to win their cooperation in the new phase of the petroleum industry development,” Zanganeh stated.

Regarding oil prices varying between 106 and 107 dollars, the minister said: “The crude price increase to this level represents both opportunity and threat. One the one hand, it is an opportunity for us to increase our revenues, but anytime the oil prices go up sharply we cannot sell oil. Currently, the prices stand high and we cannot sell oil.”

“High oil prices also represent a threat for our country, because our rivals can produce oil at high price and supply it on the market. That’s a good opportunity for them,” noted the Iranian minister.

“Today, the US is investing mainly in shale gas and shale oil production,” Zanganeh said.

The minister reiterated that Western governments and leading consumers never oppose high oil prices. “They have also shown that with these prices, shale gas and shale oil production will be economical for them."

The Iranian minister also ruled out the possibility of any strange change in the crude oil prices in the third quarter of 2013.

News Code 207085

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