Oil price to fluctuate in $70-$90 range: minister

Tehran, Jan 5, IRNA – Oil Minister Bijan Namdar Zanganeh has predicted an oil price of $70 and $90 in the coming months.
“For the first time, media is resisting oil price fall. Moreover, disputes between Republicans and Democrats in the US can sway oil prices. Therefore, it is predicted that oil prices would reach $70-90 in the coming months,” Bijan Namdar Zangeneh said.

Speaking to reporters on the sideline of a national conference on economy, Zanganeh said the sole lever wielded by OPEC in the oil market is production.

“OPEC can influence the oil market only through the lever of supply,” Zanganeh said in a shana.ir report.

“In 2014, the total world oil demand was 91.1 mb, 55.9 mb was supplied by non-OPEC, 5.8 mb was NGL and 29.5 mb was provided by OPEC,” he said, adding that non-OPEC would contribute 57.3 mb of the total 92.3-mb demand for the current year.

Zangeneh said the US shale oil production stood at 1.5 mb/d when OPEC cut its production by 2.5 mb/d in 2009. He added that the US shale oil production has now reached 6 mb/d.

Earlier Sunday, Zanganeh briefed Iranian parliamentarians on the developments in international oil markets.

First Vice Speaker Mohammad Hassan Abutorabi Fard said the minister outlined the current situation of the world oil market for the Majlis members during an hour-long closed door session on Sunday.

He provided an overview of fluctuating prices in the international oil markets and exchanged opinion with the lawmakers on the issue.

Zanganeh had earlier said that a conspiracy is behind the continuing oil price slide.

He believed the prolongation of the downward trend of oil price in world markets is a political conspiracy going to extremes.

He also said that the falling oil prices initially stemmed from overglut in markets.

By IRNA

 

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