Iranian Oil Minister Bijan Zangeneh and Russian Energy Minister Alexander Novak will meet Wednesday in Tehran to discuss the oil market and strategies to cope with low oil prices, according to Iranian media.
'In the meeting between Iranian and Russian ministers, both sides usually negotiate on OPEC and non-OPEC cooperation, as well as the international oil market,' Iran's Deputy Petroleum Minister for Commerce and International Affairs Amir-Hossein Zamaninia was quoted as saying by Iran's petro energy information network Shana on Tuesday.
Both OPEC-member Iran and non-OPEC Russia have been impaired due to plummeting prices, however their positions differ with respect to OPEC's production quota.
While Russia prefers the oil cartel to trim output in order to raise oil prices, Iran wants OPEC to increase its quota to make room as Tehran plans to increase its oil production level in the post-sanctions era.
'We hope to reach an understanding with OPEC in political terms for supplying Iran’s oil,' Zamaninia said.
Tehran plans to increase its oil production level to pre-sanction levels to reclaim its position as the cartel's second-biggest producer. So far, officials and trade missions from Germany, Italy, Japan, France, Austria, Spain, Poland and Denmark have visited Tehran to establish economic relations and invest in Iran's untapped oil and gas resources.
And now, Russia is added to the list as Zamaninia noted that Russian Energy Minister Novak was accompanied by directors from 10 major Russian firms, and added 'Russians know how to do business in Iran and we hope the visit will bear positive results.'
- OPEC technical meeting
In addition, both OPEC and non-OPEC countries will meet in Vienna on Wednesday for the cartel's technical meeting.
Apart from OPEC countries, Russia, Azerbaijan, Kazakhstan, Oman, Norway, Brazil, Colombia and Mexico are also invited to attend the meeting.
Topics on the meeting's agenda will include the current oil market and low oil prices, and the question of whether the cartel should cut production.
Within OPEC, Venezuela has advocated numerous times that the group should cut production, while Saudi Arabia, Kuwait and the United Arab Emirates have opposed this step to protect their respective shares in the oil market.
Additionally, Russia is not expecting to cut its output because in Siberia where its wells are in operation, a shut-down and restart of production would prove costly due to procedural complications with freezing temperatures.
By Ovunc Kutlu
Anadolu Agency
ovunc.kutlu@aa.com.tr