OPEC to welcome Iran’s return to oil market when sanctions lifted

By Al Mayadeen English
Source: Agencies
30 May 2023 15:27

OPEC's Secretary General reveals intentions of welcoming Iran back to the oil market after US lifts sanctions.

The sun sets behind an idle pump jack near Karnes City, USA, April 8, 2020. (AP)

The Secretary General of the Organization of the Petroleum Exporting Countries (OPEC) told the Iranian oil ministry's website SHANA on Monday that OPEC will welcome Iran's full return to the oil market when sanctions are lifted. It is worth noting that Iran is an OPEC member, although its oil exports are subject to US sanctions aimed at curbing Tehran's nuclear program.

Secretary General Haitham Al Ghais added that Iran has the capacity to bring on significant production volumes within a short period of time. "We believe that Iran is a responsible player amongst its family members, the countries in the OPEC group. I’m sure there will be good work together, in synchronization, to ensure that the market will remain balanced as OPEC has continued to do over the past many years," SHANA's English-language website cited him as saying.

Regarding OPEC’s voluntary production cut and its effect on oil prices, Ghais said, "In OPEC...we don’t target a certain price level. All our actions, all our decisions are made in order to have a good balance between global oil demand and global oil supply."

According to Reuters calculations, Saudi Arabia and other members of OPEC+, which comprises OPEC and allies including Russia, announced in early April further oil output cuts of around 1.2 million barrels per day, bringing the total volume of cuts by OPEC+ to 3.66 million barrels per day.

Earlier in March, Saudi Arabia and Iran both announced that they would restore diplomatic relations after years of hostility in a deal brokered by China, the world's No. 2 oil consumer.

Earlier this week, Al-Ghais warned that underinvestment in the carbon fuels sector may lead to volatile long-term consequences and imperil growth. The official also highlighted the necessity of reducing greenhouse gas emissions instead of focusing on substituting energy produced by burning oil and gas with other forms of energy.

Al-Ghais stressed that investments should be distributed to all energy sectors and the inability to do so will have grave consequences, further adding, "That is the truth that needs to be spoken." The organization estimates that the global gas and oil sector needs a total of $12.1 trillion in funding to meet long-term expectations.