Iran approaching pre-sanction level of oil exports

Bloomberg/Fuel Fix:
Iran says it’s almost ready to talk with other OPEC members about limiting oil production as the country’s exports recover to levels reached before international sanctions crippled crude sales.

Morgan Stanley and Barclays Plc say no agreement is in the cards for now.

With prices up more than 60 percent from the 12-year low in January, joint action by members of the Organization of Petroleum Exporting Countries may not be needed, according to Barclays analyst Miswin Mahesh in London. Morgan Stanley says higher prices are reducing the urgency for OPEC to act.

“The market is set to balance, but higher prices could slow down the process,” Mahesh said Monday. “Would it really be in their long-term interest of balancing the oil market if oil prices move higher too quickly?”

The Persian Gulf country will double crude exports to 2 million barrels a day this month compared with sales before sanctions were lifted in January, Oil Minister Bijan Namdar Zanganeh said in a speech in Tehran Sunday. Lifting sales to the pre-sanctions level could pave the way for Iran and other OPEC members to talk about limits on production in as soon as one or two months, Rokneddin Javadi, managing director at National Iranian Oil Co., said Thursday.

Iran is seeking to rebuild its energy industry and restore crude sales after a January nuclear accord expanded its access to global oil markets and investment. The country refused last month to join other nations in a push to freeze output at a meeting in Doha. The talks, which Iran didn’t attend, ended in disagreement after Saudi Arabia refused to limit production without the participation of all OPEC members.
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Some countries are justifiably reluctant to do business with the country ruled by Islamic religious bigots.   Even though the sanctions have been lifted some potential customers are reluctant to do long term deals because of fear the US will reimpose sanctions.  Iran is certainly giving reasons for reimposition of sanctions with its ballistic missile program which is proof of an intention to launch an aggressive war with nuclear weapons in the future.  They are spending their money on this program rather than improving their moribund economy as Kerry and Obama thought they would.

Recent revelations demonstrate the Obama administration used fraud to sell its deal with Iran despite all its defects.  That will give a new administration another reason to opt out of the mess.

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