(MENAFN- Gulf Times) Iran's oil exports have fallen 60% to 1mn bpd, the Tehran-based Shargh newspaper reported, citing comments by Oil Minister Bijan Namdar Zanganeh.
Iran, constrained by international sanctions on its energy and financial industries, "won't give in over 1mn bpd," the paper reported Zanganeh as saying on Sunday at a conference in Tehran. The minister didn't elaborate, nor did he specify dates for the 60% cut in the nation's exports, according to Shargh.
US and European sanctions on Iran over its nuclear programme have curbed foreign investment and hindered development of the country's oil and natural gas reserves. Iran produced 2.77mn bpd of oil in December, down from an average of 3.58mn in 2011, data compiled by Bloomberg show. Oil exports are its main source of income.
Brent crude, a pricing benchmark for more than half of the world's oil, tumbled 48% last year, the most since the 2008 financial crisis. Saudi Arabia, the biggest member in the Organisation of Petroleum Exporting Countries, has rebuffed calls from Iran and others in the group to cut output amid a struggle with US shale producers for market share.
Predicting oil prices is impossible because "political motives and interventions are behind" the recent market collapse, Zanganeh said, without explanation, according to Shargh. He previously said Iran would "under no conditions let go of its share of the oil market," the ministry's news website Shana reported on December 17.
The drop in crude prices compounds the pressure Iran faces from economic sanctions. Efforts to reach a deal with the US and other world powers over its nuclear work have gained Iran some relief from the restrictions, though diplomatic negotiations have been extended until July amid differences.
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