Iranian Petroleum Minister Bijan Namdar Zangeneh says the removal of economic sanctions imposed against the Islamic Republic over its nuclear program can help oil prices rebound to a logical level.
“With the removal of sanctions against Iran, the trend of global oil price will become rational,” Zangeneh told Mehr news agency on Friday, adding that the lifting of economic embargoes against Iran could shore up global oil prices.
Elsewhere in his remarks, Zangeneh also said that falling oil prices would not have an impact on the construction of mini liquefied natural gas (LNG) refineries in South Pars oil and gas field.
“The plummeting global oil price has no impact on the economic justification for building the LNG refineries, and undoubtedly the construction of these refineries will be carried out according to schedule,” he said.
Zangeneh also said that there is no red line for cutting the oil output level in the Organization of the Petroleum Exporting Countries (OPEC).
The Iranian official’s remarks come as oil prices surged following the news of the death of Saudi Arabia’s king on Friday. Uncertainty, however, still lingers in the energy markets as investors are watching to see if the kingdom will change its oil production policy amid plunging prices.
US benchmark West Texas Intermediate (WTI) for March delivery rose more than 2 percent to a high of USD 47.76 a barrel in early Asian trading after the Saudi royal court announced the death.
Brent crude for March also jumped USD 1.09 to USD 49.61.
The Saudi King’s death that triggered a rise in oil prices comes after months of steep falls caused by slowing global economic growth, oversupply of the black gold and the unlikely chance that the OPEC might cut crude output.
Saudi Arabia is a key member of the OPEC body. The kingdom’s decision in late November not to slash output levels led to further falling prices.
Oil prices have plunged about 50 percent since June last year.
By Press TV
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