MOSCOW, September 5 – PRIME. A possible reduction in OPEC+ production was perceived by investors as a search for a certain balance in a situation where Iran brings its oil to the market in a nuclear deal with the United States; however, it is unlikely to be concluded in the near future, so it is unlikely that the alliance will seriously reduce production, Alfa Capital portfolio manager Dmitry Skryabin told RIA Novosti.
OPEC + at a meeting on Monday decided to again reduce oil production by 100,000 barrels per day, returning in October to the August terms of the agreement.
“OPEC+ has not previously ruled out the possibility of cutting production, but investors perceived these remarks as a search for a certain balance in the event that oil of Iranian origin still gets on the world market. However, the nuclear deal between the United States and Iran is far from being concluded, so it is unlikely OPEC+ will seriously reduce production,” Skryabin said.
As foreign media wrote, Iran is ready to supply about 93 million barrels of oil to the world market immediately after the conclusion of the Joint Comprehensive Action Plan (JCPOA). Investors fear that the return of Iranian oil to world markets as part of the resumption of the nuclear deal concluded by Tehran in 2015, will cause an oversupply and provoke a fall in prices for “black gold”, the market of which has already suffered from low liquidity and high volatility.
On August 22, Tehran sent the head of European diplomacy, Josep Borrell, its response on the proposed text of the draft agreement on the restoration of the nuclear deal, and also expressed its opinion on “remaining issues” in the negotiations. The EU called Iran’s response to the nuclear deal proposal constructive and said it was consulting with the United States on further steps. On August 24, the Iranian side received a response from the United States and is still considering the comments of the American government.
In 2015, the United Kingdom, Germany, China, Russia, the United States, France and Iran signed a nuclear deal – the JCPOA on the Iranian nuclear program, which involved the lifting of sanctions in exchange for limiting Iran’s nuclear program. In May 2018, the United States under Donald Trump withdrew from the JCPOA and reinstated sanctions against Tehran. In response, Iran announced a phased reduction in its obligations under the agreement, waiving restrictions on nuclear research, centrifuges and the level of uranium enrichment.
Negotiations were held in Vienna to renew the JCPOA and lift Washington’s sanctions against Tehran. In December 2021, the parties reached an agreement on two draft agreements, in which the European side included the positions of Iran. Iranian spokesman Bagheri Kyani said the talks were going well, but US State Department spokesman Ned Price assessed the progress in Vienna as modest, urging Tehran to take the issue seriously. With the return of the parties to their capitals at the end of March, the negotiations were suspended. The Iranian Foreign Ministry blamed the US administration for this. The next round of negotiations on the JCPOA took place in Doha on June 29-30.