EMEA News
Nigeria to Request Iran Postpone Oil Production Increases
In an effort to ease downward pressure on oil prices, Nigeria says that it is planning to ask Iran to delay its planned increase in oil exports once sanctions are lifted, Platts reports.
As Ship & Bunker previously reported, Iranian Oil Minister Bijan Namdar Zanganeh says he is set to notify the Organization of Petroleum Exporting Countries (OPEC) at the group's December 4 meeting that the country is planning to raise its crude output by 500,000 barrels per day (bpd) from its current 1 million bpd in early 2016.
"There is a lot of sensitivity [to] the $42/barrel oil price currently, that it has the potential to go down if Iran throws the estimated 1.5 million bpd of crude into the market by next year," said Emmanuel Kachikwu, Nigeria's Junior Oil Minister.
"I will be meeting one-on-one with other OPEC ministers to try and see how we can at least get to delay Iran flooding the market with 1.5 million bpd.
"I will be talking with Iran's oil minister on that so that we can stabilise the price."
Brent crude Wednesday fell to $42.49 per barrel, anf the chronically low prices are reported to have created financial challenges for Nigeria.
On Wednesday, Zanganeh said that, through a series of letters, he has continued to urge OPEC members to adhere to the group's official 30 million bpd ceiling and to make room for Iran's planned production boost.
Zanganeh has also noted that Iran will proceed with its plans for increased production and exports even if oil prices continue their decent.
On Monday, it was reported that Stephen King, senior economic advisor for HSBC Holding Plc, said that while much attention has been focused on the output of OPEC being crucial to an oil price rebound, the real driver is China.
