Friday , December 3 2021

Why Iran's positive OPEC spin will not go sooner



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In recent months, it has been difficult to hear some positive statements from Iran's troubled oil sector, especially since President Trump decided in May to restore severe penalties over what he considers as Iran's lack of compliance with the 2015 nuclear agreement reached with the United States and others Western forces.

Iranian oil director Bijan Zanganeh praised OPEC on Saturday about what he claimed was the oil-producing cartel's ability to reach an oil exit agreement despite intense political differences. On 7 December, the so-called OPEC + producer group, which included production conflicts Saudi Arabia and non-OPEC members Russia, agreed to trim production by 1.2 million bp for six months, starting January as the agreement will be reviewed in April.

The relocation is intended to drain global oil markets among supply deficiencies such as the US, Saudi Arabia and Russia, the world's three largest oil producers, pumping record levels. It will also be as oil-based growth problems persist due to ongoing trade tensions between the US and China. "OPEC … has demonstrated the capacity that members can hold talks and achieve important results about their common interests, even though they have the most intense political conflicts or even military conflicts (as during the war between Iran and Iraq)" said Zanganeh his Twitter account.

Iran's positive twist

This is the first positive twist that Iran's media-savvy oil ministers have put on OPEC's development for months. Although OPEC + reached an agreement on 7 December, including refraining from Iran to reduce production in view of its problems with new sanctions, the optimal tone simply will not be.

Vying for regional domination

Both Iran (OPEC's third largest producer) and Saudi Arabia (OPEC's largest producer and de facto leader) face geopolitical hegemony in the Middle East, mainly through proxy war in Yemen and Syria. The two countries also have different views on how OPEC should act as a unit, how it should react to President Trumps seemingly constant Tweets, which requires high OPEC production to keep oil prices down and more peaceful how the cartel will work with Russia and other non-OPEC oil production partners. Related: These countries found the most oil in 2018

Saudi Arabia and Iran are also unbelievable about Tehran's development plans for ballistic missiles and the Islamic Republic's controversial nuclear development program, a problem that continues to celebrate when US sanctions are eating in Iranian economic growth, which causes massive unemployment to rise and continue its path for its currency.

Iran's renewed threat

The case, last Thursday, warned Ali Akbar Salehi, director of the Atomic Energy Organization of Iran (AEOI) that Iran is able to recover 20 percent uranium enrichment if the 2015 nuclear agreement is discarded by parties still in the agreement. "The enrichment is currently underway, but we would put away the 300kg limit (as determined by the nuclear agreement) when we wish and would enrich at any volume and level," he said in an interview with state television laterally visit to the Fordo nuclear facility. "We currently have 1,044 centrifuges in Fordo, and if the plant wants, we will reboot 20 percent uranium enrichment in Fordo," he added.

UK and France voice care

His comments come only one week after France and the United Kingdom, both Signatories of the 2015 nuclear war, warned Tehran that it could violate UN obligations by testing medium-ballistic missiles that can carry several warheads. UK Secretary of State Jeremy Hunt said in a statement that he was "deeply concerned about Iran's interruption of a medium-term ballistic missile. Provoking, threatening and inconsistent with UN Security Council Resolution 2231. Our support for JCPOA does not reduce our concern about Iran's destabilizing missile program and determination that it will end. "

French President Emmanuel Macron's office issued a similar statement saying that it was deeply concerned and the test was "provocative and destabilizing". It called on Iran to stop all testing of ballistic missiles that can carry nuclear warheads.

By Tim Daiss for Oilprice.com

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