Its light oil blend fell $1.93 to $45.42 per barrel and Iran Heavy, the country’s main export grade, settled at $48.11 a barrel, losing $1.20 in the week, IRNA reported, citing Oil Ministry data. So far in 2017, Iran’s heavy and light crude have averaged $51.37 and $50.68 a barrel respectively, holding just above the $50 mark thanks to strong gains in the first quarter following a global pact to cut crude oil supplies.
Thirteen members of the Organization of Petroleum Exporting Countries announced a landmark deal to reduce collective output by 1.2 million barrels a day, effective in the first six months of 2017. They were joined by 11 producers outside the organization, including Russia, in an effort to ease the oversupply of crude oil which has put severe financial strain on producing nations over the last three years. The price of OPEC basket of thirteen crudes stood at $48.37 a barrel on Thursday, compared with $47.31 the previous day, according to OPEC secretariat calculations.
Global oil prices rallied on Friday, the last trading day, as US crude inventory data showed that OPEC-led output cuts were helping reduce a global glut. Benchmark Brent crude settled up 7 cents at $50.84 on Friday and US light crude was up 1 cent at $47.84, Financial Tribune reported.
Still, prices are more than half of their peak levels since mid-2014, when oil traded around as much as $115 per barrel.
Iran pumped 3,759 million barrels per day in April, trimming 39,000 barrels in daily crude oil production compared to the previous month, latest OPEC data shows. Iran’s production is within the limits of the oil agreement in which the country was allowed to produce an average of 3.8 million bpd in the first half of the year.