Russian Federation to Buy Iranian Crude Oil

"We agreed that on March 27, the Iranian delegation will arrive to present the Iranian oil contract".

Iran's Oil Minister Bijan Zanganeh was quoted by the domestic media as saying that if oil specifically surges above $60 per barrel, the non-OPEC producers would increase their production to benefit the most from rising prices, according to PressTV.

Iran had announced that it will start exporting to Russian Federation within two weeks. He added that a number of Russian companies have already signed memorandums of understanding with Iranian companies.

According to the bill, the Iranian oil ministry should take steps to export gas to the European Union and neighbouring countries-which are not buying oil from Iran- using the private sector potential, if the gas output surpasses 1000 million cubic meters per day.

Oil Minister Zanganeh stressed that in the absence of unexpected events in 2017, the oil market will reach equilibrium as a balance will emerge in supply and demand.

Earlier this month, Russian Energy Minister Alexander Novak said that Moscow considers it possible to extend its participation in the oil producing states' agreement on output cuts for another six months, and will decide on the issue in April or May.

Zangeneh also said that crude above $55 per barrel was not in the oil cartel's best interest.

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  • Zachary Reyes