Iran، other OPEC members face tough conditions in oil market

Mahmoud Khaghani said in remarks to ILNA that “Our oil and gas market is in a very special situation and we are experiencing new conditions which mean we are witnessing the step by step change of the structure of the market.”

“Currently, given the developments in the energy market, some countries have benefited most. For instance, in the market of China, India, and Japan,  good conditions have been created. Russia and Iran as two countries with huge oil and gas reserves, are in similar conditions and both are under sanctions, ” he added.

It isn’t clear yet whether the 2015 Iran deal will be revived and it is expected that the sanctions will continue, he said, adding that “In the eastern markets, Iran is getting around the sanctions to generate oil revenues and it sells its oil cheaply.”

He noted that Iran has engaged in a competition with Russia and that a special conditions are taking shape for some countries, not just for Iran but also for other OPEC members.

He said that in addition to Iran, Saudi Arabia, the United Arab Emirates, and Kuwait also will not have good conditions in the oil market, which means that the countries that send their oil to the eastern market should compete with the cheap Russian oil.