Zanganeh: Too soon to react to oil price fall

TEHRAN, Sep. 11 (MNA) – Iran’s oil minister has said Iran faces restrictions in requesting emergency OPEC meeting to address falls in oil price.

Bijan Namdar Zanganeh told Mehr News who asked him whether Iran would request an emergency meeting to address falls in oil prices that the ministry had no plans to do so. “Currently, we do not believe that an emergency meeting is necessary,” Mr Zanganeh added.

Mehr correspondent asked Mr Zanganeh that how much crude price slump would persuade Iran to request an emergency OPEC meeting. “We currently face restrictions in making a request for such meeting; however, other OPEC members would soon make such request to the OPEC,” said he.

Asked whether he was satisfied with prices below $100 per barrel, Zanganeh said that the higher the oil prices, the better. Zanganeh also said that no predictions could be made now for future months about cuts in crude supply by OPEC.

Oil prices plummeted yesterday to below $100 per barrel after gradual fall during next two months and collective decrease of 15 per cent. On Tuesday, it hit $100 per barrel which is the OPEC threshold price. North Sea Brent crude reacted to slow growth in economy of China and the US, and for the first time in last 14 months, it priced below $100 per barrel.

Oil prices in the US also saw a fall. Poor economic situations along with surplus in crude supplies have decreased prices from June’s $115 down to below $100 per barrel. This issue complicated the attempts to fight high inflation by central banks around the world and mounted financial pressures on oil-producing countries. Yesterday, Brent crude was traded for $99.82 per barrel. It experienced lows as $99.36 per barrel which is the lowest price since May 2013.

It exceeded $100 per barrel in today’s opening hours, thus approaching OPEC threshold price. Analysts believe falls in oil prices improves speculations that OPEC would meet in an emergency session to address the issue.

By Mehr News Agency

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