Iran’s production on the rebound, as Saudi Arabia loses market share

TEHRAN, Iran - According to analysts, as oil cuts continue, they are also threatening the world’s biggest crude exporter, Saudi Arabia losing its market share to Iran and Iraq. 

Robin Mills, founder of Dubai-based consultant Qamar Energy has said in a statement that Saudi Arabia knew it would lose share because Iran’s production was on the rebound.

As a result of OPEC’s agreement to curb supplies to bolster prices, the head of research at Abu Dhabi Investment Authority says that Saudi Arabia is losing market share to Iraq and Iran. 

Addressing a conference in Dubai, Christof Ruehl said, “If you’re talking about winners, you can count Iran and Iraq.” 

In November last year, the Organization of Petroleum Exporting Countries agreed to production limits for most of its members and brought 11 other nations on board with the deal in December. 

OPEC’s biggest producer, Saudi Arabia, agreed to cut output by 486,000 barrels a day while Iraq said it would cut 210,000 barrels a day. 

Further, according to the OPEC accord, Iran was permitted to increase output by 90,000 barrels a day.

Sine the international sanctions placed against Iran were lifted in January 2016, the country has boosted production.

Ruehl said that Saudi Arabia has made more than its share of output cuts. 

Meanwhile, Robin Mills, founder of Dubai-based consultant Qamar Energy has said that Saudi Arabia was aware that it would lose share because Iran’s production was on the rebound. 

He said, “The Saudis agreed to production cuts at a time when Iranian production was at a high.”

On Wednesday, Saudi Minister of Energy and Industry Khalid Al-Falih told reporters in Baku, Azerbaijan that there seems to be a consensus that the effort to curb supply should be extended.

Al-Falih further noted that he’ll talk with his Russian counterpart Alexander Novak this week and meet him within the next two weeks.

In December, Saudi Arabia cut production from about 10.5 million barrels a day to as low as 9.87 million daily in January and 10 million a day last month. 

However, in January, Iran’s output rose to 3.8 million barrels a day, the highest since April 2010. 

In March, Iraq meanwhile pumped 4.43 million barrels a day, down 200,000 barrels for the year.