Iranian Oil Minister Bijan Namdar Zanganeh told CNBC that he did not think oil prices would slump when his country’s oil re-enters the markets.
Speaking from the annual Organization of the Petroleum Exporting Countries (OPEC) conference in Vienna, Zanganeh said Iran’s main concern was market share.
“I don’t believe that we will witness a new fall in the oil price in the market, but the main issue for Iran I should emphasis is to achieve the traditional market share of Iran in the oil market,” he told CNBC.
OPEC-member Iran has been forced to limit its oil exportation as a result of international sanctions levied on the country because of its nuclear enrichment program. However, international talks aimed at striking a deal that would see the sanctions lifted have been taking place.
Zanganeh said that Iran could bring around half a million barrels of oil per day to the market withing the next one or two months, upping that to around 1 million per day for exports in the next 6 months.
OPEC’s meeting on Friday will see the body announce its new production target. This is seen remaining at 30 million barrels a day, but could be hiked.
CEO of oil and gas independent consultancy and research firm Petroleum Policy Intelligence, Bill Farren-Price said the influx on Iranian oil into the market could have a big impact on prices, as it is likely that the country have been building up their oil supply in recent years.
“I think that is going to be the big question whether Iran can actually deliver these barrels, whether the deal is done by the end of June, but I do expect Iran will come back – its got a lot of oil in storage that will be released, they may make a bit of a splash when they start up again and that could have a big impact on the market certainly,” Farren-Price told CNBC.
Oil prices fell slightly for the third day in a row on Friday as investors awaited the decision on OPEC global supply.
Brent crude oil for July fell to trade around $61.88 a barrel, while U.S. crude futures were down about 40 cents at $57.63.