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![]() by Daniel J. Graeber Tehran (UPI) Jun 10, 2015
Meetings between members of the Organization of Petroleum Exporting Countries are no place for debate, Iran's oil minister said. OPEC last week opted to keep production levels static, taking note of the expected increase in global demand in the second half of the year. OPEC's November decision to hold output steady in an over-supplied market pushed crude oil prices to historic lows. Iranian Oil Minister Bijan Zangeneh said crude oil prices are largely driven by political factors. "Never can one say that politics has nothing to do with oil," he said. "Oil is an eco-political issue." The minister in April said the Islamic republic could return as a dominant force in OPEC if sanctions are lifted as a result of nuclear negotiations with international powers. Iran holds the third-largest proven oil reserves among OPEC member states, behind Venezuela and Saudi Arabia, respectively. Under the terms of a joint deal reached in November 2013, oil exports are limited to around 1 million barrels per day and to just six countries: China, India, Japan, South Korea, Taiwan and Turkey. Exports could double if all sanctions are released later this year. Despite the expected increase, Iran's oil minister said most decisions are made before OPEC ministers sit down for the regular meetings. "OPEC is not a place for all [member states] to negotiate and convince each other," he said. "Everyone knows what he wants and what he does and everyone has made up his mind before coming." OPEC in its latest monthly market report said total Iranian oil production of 2.8 million bpd for May was relatively unchanged from the previous month, but 2 percent above April levels. OPEC has said the Iranian government viewed its oil industry as "very attractive" to foreign investors, including those from the U.S. and European economies. Iran before sanctions were imposed in 2013 was exporting around 2.7 million bpd.
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