Iran sees direct threat in oil production freeze

A possible agreement to freeze the level of oil production between OPEC members and other oil producers is directed against Iran, the Iranian government said.

A government spokesman for that country, Mohammad Bagher Nobakht, said: "This means that oil-producing countries do not want to recognize Iran's right to get out of sanctions." To break the deadlock, the OPEC countries must reduce oil production, Nobakht said. He also noted that OPEC members should make way for Iran to enter the oil market. Oversupply damages the global oil market, he said. “We expect OPEC members to demonstrate a realistic approach in this regard,” added a government spokesman.

Currently, OPEC countries, as well as states that are not part of the cartel, are discussing the possibility of freezing oil production in order to stabilize the situation on the oil market. Saudi Arabia, Russia, Qatar and Venezuela agreed on February 16 to keep oil production on average in 2016 at the January level if other producers join such an initiative. Venezuela's oil minister later announced that the proposal was supported by Ecuador, Algeria, Nigeria, Oman and Cuvette.

According to OPEC data, oil production in Saudi Arabia, the largest oil producer and exporter in the cartel, amounted to 10.23 million barrels per day in January. According to the cartel, oil production in Russia reached a new record level of 10.91 million barrels per day in December last year and remained at a fairly high level in January.