Iran reviews proposal to cut oil output

[JohnWxy]

http://uk.reuters.com/article/oilRpt/idUKDAH32437320080513?pageNumber=1&virtualBrandChannel=0


By Parisa Hafezi and Zahra Hosseinian

TEHRAN, May 13 (Reuters) - Iranian President Mahmoud Ahmadinejad said a proposal for OPEC's second biggest producer to cut crude output was under review by experts, Iran's semi-official Fars New Agency reported on Tuesday.

Oil Minister Gholamhossein Nozari said earlier on Tuesday the world's fourth-largest oil exporter was reviewing how much oil it pumps but had taken no decision on any changes.

"There has been such a proposal and it is under expert review," Fars quoted Ahmadinejad as saying when asked about the possibility of reducing output.
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Neither Ahmadinejad nor Nozari said why Iran was reviewing output, which hit 4.203 million barrels per day (bpd) in March, the highest level since its 1979 Islamic revolution.

"So far we have not decided to decrease output. We are reviewing the issue. The result of this review could lead to an increase or decrease of production," Nozari was quoted as saying by the Oil Ministry's website Shana.

(more)

[angstlessk]

1. oil prices rise on news of an oil producer 'thinking about' cutting production...

wish I could tell my customers, gee think I will just cut some production and watch MY price go UP???

[bhikkhu]

2. There is a history of ME countries announcing production cuts

due to "oversupply", in conjunction with the realities of the geological constraints of production. The Saudis did the same not too long ago. A field tanks and they announce a cut due to oversupply; when new projects come on line, they ramp up production and reap the profits.

This is just to suggest a healthy skepticism...based upon rig utilization they are all going flat out, and "making hay while the sun shines". Production goes up and down regardless, yet it serves their purpose to appear to be in good control of when and how much oil comes to market.