IRAN MAINTAIN 1MB/D
Iran anticipates maintaining crude exports at about 1 million barrels a day until at least July when a deal with global powers over its nuclear program will be renewed or expire, the nation's deputy oil minister said.
Iran is producing about 2.7 million barrels of crude a day, Ali Majedi said today in Dubai. Output may rise to as much as 3.7 million barrels daily within six months of sanctions being lifted, he said, adding the move would also open the nation's energy industry to investment.
The nation plans to outline a new oil development contract at a conference in London by November, offering overseas partners incentives. "We will introduce the new contract, plus some of the oil and gas fields for development," Majedi said at the Middle East Petroleum and Gas Conference.
Iran, the fourth-largest oil producer in the Organization of Petroleum Exporting Countries, is discussing limits to its nuclear program in exchange for the removal of sanctions on its financial and energy industries. The U.S. and allies say Iran is seeking to develop atomic-weapons technology, a claim Iran denies. An interim deal between the parties expires on July 20.
The revised oil contract terms will allow for flexible payments to international companies based on crude prices and development risk, the minister said.
The country is also seeking international buyers for its gas next year when the expansion of offshore fields will boost production levels to more than domestic demand, Majedi said.
"Iran plans to increase gas exports once domestic demand is saturated," he said. "Pipeline export is preferred to liquefied natural gas shipments" for sales to markets including Europe, Majedi said.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.