Oil Freeze Deal Unlikely, For Now

Oil Freeze Deal Unlikely, For NowOil Freeze Deal Unlikely, For Now

Iran’s plan to keep boosting crude production until it regains its OPEC market share is dimming prospects of collective action by major producers to freeze output, according to Patrick Allman-Ward, chief executive officer of Dana Gas PJSC.

“I’m not overly optimistic about an oil freeze being agreed,” Allman-Ward said in a Bloomberg Television interview in Dubai on Sunday. “There’s pressure with Iran working to increase production. The environment is not that conducive to a freeze.” Dana Gas produces hydrocarbons from Egypt to Iraq and sells condensate, a light oil, Bloomberg reported.

Iran lost its position as OPEC’s second-largest producer after the enforcement of tighter international sanctions on its economy in 2012.

While the country supports action to stabilize the market, it will not participate in a freeze in output before regaining its pre-sanctions share of OPEC production, state-run news service Shana reported Friday, citing Oil Minister Bijan Namdar Zanganeh.

OPEC said this month that its members will discuss markets at a September gathering of the International Energy Forum in Algiers.

Iran has regained about 80% of the market share it held before sanctions intensified in 2012, Mohsen Ghamsari, director of international affairs at National Iranian Oil Co., said in a July 11 interview. Ghamsari said at the time that Iran was exporting about 2 million barrels of its daily output of 3.8 million. It’s now pumping about 3.85 million barrels of crude a day, Zanganeh told Fars news agency on Aug. 10.

Iran will be wary of curtailing its output when Saudi Arabia, Iraq and other producers may seek to sell more, Robin Mills, chief executive officer of consultant Qamar Energy in Dubai, said Sunday by phone.