OPEC will do with Iranian oil

OPEC will do with the Iranian oil?

Just when it seemed that
OPEC’s winning the war with
US shale drillers,
has opened a dangerous new “front” – and,
within its own ranks. And it’s Iran. OPEC summit
which will be held on June 5 will determine
group power, but just three
Time becomes clear what the outcome
deal on Iran’s nuclear program.
The government in Tehran says
successful outcome could add to the market
almost 1 million barrels per day from Iran,
this rate the country could increase to
within six months after the removal of
sanctions.

This million barrels,
which OPEC was not worried before,
when it decided to maintain its
strategy (last November) –
leave each share of the market to
greater pressure on prices – now begins
scare the market. The cartel already pumps
record the amount of oil to
suppress other manufacturers, but
when Iran will return to the game, this will increase pressure on OPEC and increase competition
competition within the group.

"Many are now struggling
for its position in the OPEC", – says Ole
Hansen, head of strategy
Copenhagen Saxo Bank A / S. – "In Saudi
Arabia increasing production and there is no more
one in OPEC who could produce so much
same. If OPEC ready to cut production,
to make way for Iran, they
We must make to reduce power
producers outside the group".

OPEC is not expected
will change production quotas at 30 million
barrels, when countries will meet in
Vienna – thought so almost all analysts
and traders Bloomberg in May. Actually,
group power production increased in
During the year, showing its determination to
not to yield a single barrel of stake
market to compete with other
manufacturers.

Iran, once a second
largest producer in OPEC, and
Now – five, intends to fully
"regain lost share
oil market"- said Minister of Oil
Bijan Namdar Zanganeh May 6 in Tehran.
OPEC must take into account the increased production
their countries, he said in comments
Shana agency in April. Meanwhile,
OPEC’s strategy seems to be working:
the number of active US
oil rigs fell by
record 60% – up to 646. Extraction of slate
seams in the US fell in May for the first time
February 2011, as manufacturers reduced
billions of dollars of their costs.

As for Iran
negotiations – they, unlike the Greek,
are more or less rationally. Iran and
Six world powers, including the US, Russia
and China, seek to complete by June 30,
discuss the details of the nuclear agreement,
to rein in Iran’s nuclear program
in exchange for the easing of sanctions. discussions
resumed in Vienna this week, and
all the parties have stated that these negotiations
They have good prospects. increase
of production in Iran and its neighbors –
Iraq, OPEC will increase competition for the
oil sales in the fastest-growing
Asian markets and threatens to kill
A 40% rally in crude oil prices, which
raise prices to six-year low
in January. Brent crude,
benchmark for more than half of the world
manufacturers and buyers traded
today at 2.03% lower – at $ 64.15 per barrel
at 14:41 MSK.

Iraq too seriously
It plans to increase production volumes and
oil exports – in May, the country gradually
restored after decades
war and sanctions. Last month
recorded record 3.87 million barrels
a day, by Bloomberg data. Iran, on average
It produced 2.8 million barrels a day,
It used to be as much as 6 million (in
1970, for example). World powers reached
agreement with Iran in April. If
the final agreement will be made,
US and European sanctions,
are likely to be gradually reduced,
and it can mean an additional
the growth of exports from Iran, but it happens
and not just as analysts in
Societe Generale SA.

The best option for OPEC
in case of restoration of Iran’s production
– is to hold the prey and hope
that absorb additional supplies
demand growth, – said Mayk Vittner,
Research center head
the oil market in the Societe Generale in New York.
– "To prevent the OPEC strategy
tired manufacturers of inexpensive
raw material manufacturers to add permissions
high oil prices reduce the costs, drilling
and production".

By the way, “shot”
Iranian oil could hurt market
even before the country regained its
power. She has about 10 million barrels
deposited in court, said the deputy
Oil Minister Roknoddin Javadi recently
in Kuala Lumpur.

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