Oil in Global Economy Series: Iran eyes cut exemption amid U.S. sanctions

As OPEC meeting continues to in Vienna, Iran is actively seeking a production cut waiver as the country struggles amid U.S. sanctions. According to a survey by Reuters, Iran’s production declined to 2.85 million barrels per day, and according to Platts’ survey, Iran’s oil production dwindled to 2.98 million barrels per day in November. Last month’s OPEC report also suggested that the production is indeed going down amid U.S. sanctions, which were imposed on Iran since November by the United States barring Iran’s access to the U.S. dollar-based financial systems and making it difficult for Iran to obtain tanker insurances for its production.

Amid this toughened conditions, Iran’s oil minister has confirmed that his country would actively seek a production cut waiver. According to energy minister Bijan Zanganeh, price between $60-70 per barrel would be acceptable and sustainable to Iran. He further added that OPEC members are close in clinching a production cut agreement, in coordination with Russia.

OPEC leaders are holding a two-day meeting in Vienna with non-OPEC producers led by Russia on 6th and 7th at the OPEC headquarter.