Novak says Russia could hike oil production after Iran sanctions

Russia stands ready to hike its oil output after the implementation of U.S. sanctions on Iran, the country’s energy minister told CNBC on Sunday.

President Donald Trump’s administration can be set to impose fresh sanctions on Iran targeting the country’s crude industry on November 4. The U.S. can be reimposing sanctions on the Middle Eastern nation as part of its withdrawal via the 2015 Iran nuclear deal.

“I don’t think we can discuss the exact number at This kind of point nevertheless what I can tell you for sure can be of which we have significant potential to boost our production,” Russian Energy Minister Alexander Novak told CNBC’s Steve Sedgwick at the Joint Ministerial Monitoring Committee (JMMC) in Algiers on Sunday.

“So we can restore production to October 2016 levels as well as we cannot go above of which nevertheless we could be looking at the overall supply-demand balance before we take any decisions.”

Earlier inside the month, Novak criticized U.S. sanctions on Iran as “unproductive” as well as “wrong,” as well as said there “will be consequences.”

Companies of which rely on access to Iran’s oil market have been steadily cutting off their buying of Iranian crude as the State Department has warned firms to cease purchases by early November.

Europe has been calling for concessions to exempt certain industries via the wide-ranging levies. nevertheless U.S. Secretary of State Mike Pompeo as well as Treasury Secretary Steven Mnuchin have rejected these pleas, saying the sanctions are aimed at maximizing economic pressure on Iran.

The Organization of Petroleum Exporting Countries, commonly abbreviated to OPEC, has come under increasing pressure amid comments by Trump as well as impending sanctions on Iran. A steep decline in production via Venezuela, whose economy has been crippled by hyperinflation, has also added to pressure on the cartel to boost production.

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