Iran's OPEC Official Rules Out Colluding With Cartel to Curtail Production

MOSCOW (Sputnik) – Iran will not be part of any Organization of the Petroleum Exporting Countries (OPEC) agreements to freeze oil production levels as it is trying to increase its market share, the director of OPEC Affairs Department at the Iranian Ministry of Petroleum said Wednesday.

OPEC members will convene in Vienna, Austria on Thursday to discuss a plan to freeze oil production, two months after the previous attempt failed amid Saudi Arabia’s reversal.

"Iran expects fellow OPEC members to understand Tehran's status which is trying to bring its market share and production level after years of draconian sanctions to the pre-sanctions levels," Mehdi Asali told the SHANA news agency.

According to Asali, OPEC members are focused on restoring market stability and the issue of introducing a cap on oil production can be considered after the market balance is achieved.

"The issue of production quota has become a time-consuming and complicated matter to consider and any agreements regarding the quota system will need stability of the members' output for a certain period of time which is not attainable under the current circumstances," the official added.

Oil prices have plunged more than 60 percent from their peak of over $110 a barrel in June 2014 because of global oil production outpacing global demand. Since the 12-year low registered in January, oil prices have rebounded more than 75 percent.

In April, OPEC and major non-OPEC oil producers failed to agree on freezing oil output at January levels to shore up prices after Saudi Arabia backed out of the deal, insisting that Iran, which has been boosting oil production after years of international sanctions, should be part of any production cuts.