Iran's energy sector review

Once, OPEC members failed to reach an agreement to decline ceiling output several months after starting oil prices in mid-2013, the oil futures faced rapidly plunge and the prices fell to bellow $30/barrel in early 2016. Then, Venezuela, one of the worst economies in the world, started tough negotiations to convince OPEC and some non-OPEC members like Russia to freeze the production at January level. It's attempts, supported by Russia were field in Doha meeting on April 17 as well. After all, with keeping production level at 32.5 million barrels per day (mb/d), OPEC succeeded to make non-OPEC producers, especially the US, to decline output. For 2016, it is expected the non-OPEC output decrease by 0.7 mb/d and the glut on markets would be clear by late 2017. Once, in 2008, the global markets faced glut and prices declined significantly, OPEC's production level was about 32.5 mb/d, but they decreased the volume by 2.5 mb/d to support the prices. Since then, non-OPEC output

Iran's gas deliveries to power plants in the first two months of the current fiscal year, which started on March 21, are still below the level of the same period of the last year. Iran was planning to increase the gas supply to power plants by 7 billion cubic meters (bcm) in the current fiscal year (FY) to 65 bcm. However, according to the latest weekly report, released by the Energy Ministry on May 31, Iran's power plants were supplied with 8.97 bcm of gas during the first two months of the current FY, or 7.6 percent less than the same period in the last FY. During a period of two months from March 21 to May 21, Iran consumed 145 million liters of gas oil, as well as 467 million liters of fuel oil, which indicate 34.4 percent decrease and 6.4 percent increase, respectively, as compared to the same period of the last FY. The lower gas deliveries to power plants happened while the country's total primary energy consumption and electricity generation decreased during