Oil prices fell by around 2% this on Tuesday morning, with Brent crude futures trading 77 cents down now at $38.76 per barrel and U.S. crude futures also down 77 cents trading at $36.41 a barrel.
Concerns of the falling oil prices continue as Iran has put off plans to join the nations proposing a freeze on production, with the oil minister Bijan Zanganeh saying that Iran would only enter discussions after its production has hit 4 million barrels per day.
Bijan Zanganesh said at the weekend:
“I have already announced my view regarding the oil freeze and I’m saying now that as long as we have not reached four million in production, they should leave us alone. When we reach this level of production, we can then co-operate with them.”
According to OPEC’s monthly oil report, Iran produced 3.1 million barrels in February.
Analysts remain concerned with Iran’s reluctance to curb oil production. Oil prices have fallen 70% since prices were $115 a barrel in June 2014.
In February, Saudi and Russia struck deals with OPEC to freeze production at January levels.