Oil Production Easing of Iran Starts in June for OPEC’s Approval

OPEC could assent the oil output reduction for next year to begin in June, according to the statements of the oil minister of Iran, Bijan Zanganeh, as reported in the Wall Street Journal on Sunday.

However, Bijan wanted OPEC to keep the present oil price around $60 a barrel to meet the U.S. shale oil production.

Yet, if the price rises close to $70, this will induce more production of shale oil in the U.S., Zanganeh added.

Iran would like to return to its previous production with the current rate around 3.8 million barrels per day (bpd) around 100,000 bpd, said by Zanganeh to WSJ. Although, there is no particular date yet when would this take place.

Part of a global pact with OPEC, Russia and other oil producers, Iran is permitted to pump up to 3.8 million bpd to curbing the commodity supply. The next meeting is expected in June.