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The oil production in Iran has been in a stagnation the 3rd month in a row

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The oil production in Iran has been in a stagnation the 3rd month in a row

The oil production in Iran has been in a stagnation the 3rd month in a row
September 09
12:30 2016

We can observe the oil production decline in Iran during the last three months -the latest statistical data reflect this. The stagnation has replaced the stable growth of the production. This suggests that Tehran is not able to implement the plan for increasing the raw material production. However, Iran asks  OPEC not to attach it to any agreements on the oil freezing.

After the sanctions were removed from Iran and the country gained the access to the global market, oil prices have collapsed. The country’s oil production in June soared to 3.64 million barrels per day in relation to the average level of the last year, which amounted to 2.84 million barrels per day. Since then the production growth has stopped and last month it was equal to only 3.63 million barrels per day.

In the recent past Iran failed a deal between OPEC and Russia, which is not a member of the organization, on suspension of oil production. Saudi Arabia, which is the largest oil producer, was taking a stand that the agreement should involve all countries. Nevertheless, the negotiations did not take place in April.

While Russia and Saudi Arabia are trying to resume negotiations on the freeze of the extraction of raw materials in order to stop falling prices, Iran has hinted that it is ready to cooperate. However, Iran has not made a specific statement that will support the suspension of the production.

Tehran has confirmed its participation in the talks on 26-28 September in Algeria between OPEC and the countries that are not a part of the organization.

The source that is familiar with the Iran’s position said that “this was the million dollar question, referring to the extraction of oil. The shuttle diplomacy has been activated in order to find out what level is considered acceptable by Tehran.“

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