Iranian Oil Minister Bijan Namdar Zanganeh said on Thursday that US President Donald Trump’s decision to quit a multinational nuclear deal would not affect Tehran’s oil exports.
“Trump’s decision will not have any impact on our oil export ... That era is history now,” he told state television, Reuters Reported.
Trump announced a US withdrawal from the 2015 nuclear deal on Tuesday and said he was preparing new sanctions against Iran. Zanganeh said foreign investment was needed to develop Iran’s oil industry, but that it could survive even if foreigners decided to stay away for fear of US penalties.
“If foreigners invest in Iran, it will accelerate the development of our oil sector, but if not, we will not die,” he said.
The US Treasury Department said on Tuesday that the United States would reimpose a wide array of Iran-related sanctions after the expiry of 90- and 180-day wind-down periods, including sanctions aimed at Iran’s oil sector and transactions with its central bank.
Under the deal reached in 2015 between Iran and six major powers, Tehran agreed to curb its nuclear program in return for the lifting of most international sanctions that crippled the country’s economy.
No Change in Production
In the wake of new US sanctions, some buyers of OPEC’s third-largest oil producer said on Wednesday they would seek US exemptions to purchase Iranian crude. Zanganeh said Iran’s crude production was about 4 million barrels per day, almost 4% of global output.
“I expect the production to remain the same until the end of this [fiscal] year,” he said, which ends in March 2019.
In the last round of sanctions, Iran’s oil supplies fell by around 1 million bpd, but the country reemerged as a major oil exporter after sanctions were lifted by producing 3.81 million bpd in March 2018. In reaction to a tweet last month by Trump that accused OPEC of “artificially” boosting oil prices, Zanganeh said, “Trump is not honest about oil prices ... He wants higher prices."
Crude prices slipped on Thursday, giving up early gains as investors took profits on a rally triggered by potential disruption to oil flows from Iran.
“I personally prefer a stable crude price of $65 per barrel,” Zanganeh said.
The OPEC countries, Russia and several other producers began to reduce oil output in January 2017 to erase a supply glut and prop up prices. They have extended the pact until December 2018 and meet in June to review policy.
OPEC, however, is in no hurry to decide whether to pump more oil to make up for an expected drop in exports from Iran, four sources familiar with the issue said, saying any loss in supply would take time.
