Tehran, Jan 31, IRNA — The Organization of Petroleum Exporting Countries has no immediate plans for cutting its crude output, partly because they intend to rattle the US oil shale producers who are shaking up the industry.
According to Fars News Agency, Zanganeh told reporters at a recent conference in Tehran that even if oil prices dropped to $25 a barrel, Iran’s oil industry faces no imminent threat.
On January 19, Brent crude traded below $49 in London. Crude oil prices have fallen more than 30 percent since OPEC’s November decision to keep its output unchanged at 30 million barrels a day.
OPEC is not expected to hold any emergency meeting. The group’s next meeting is scheduled for June 5, 2015.
Iran, along with Venezuela, another major oil exporter, has called on OPEC to support a proposed recovery in crude oil prices.
OPEC, which supplies more than 40 percent of the world’s oil, has a major influence on crude oil markets. The recent US shale boom,, as already mentioned, has also contributed to this global surplus, and countries like Qatar and the UAE have estimated this oversupply to be is in excess of 2 million barrels a day.
Iran, on the other hand, has been restricted by various international sanctions over its alleged nuclear weapons program and has been struggling for market share ever since.
Brent crude, the benchmark for more than half of the world’s oil supply, slipped more than 15 percent in Dec.-Jan., and was 39 cents lower at $48.54 a barrel last week. Oil fell by more than 50 percent last year, the most since the 2008 global recession.
Zanganeh had said that Iran is in negotiations with fellow OPEC members to respond to the global oil collapse, but did not provide any details of the same.
As of now, OPEC has not come to a decision regarding a reduction in its production output.
Ali al-Naimi, Saudi Arabia’s oil minister, remarked that the excessive supply issue would remain irrelevant to the nation even if crude price dipped as low as $20 a barrel.
UAE Energy Minister Suhail al-Mazrouei stated in an interview last week that sustainable development in the oil industry could not happen at the prevailing prices.
Iran has decided to lower its projected crude price for this year’s budget from $72 to a revised $40 a barrel.
The Persian Gulf nation pumped approximately 2.8 million barrels of oil every day in December 2014, which is lower than the 2011 average of 3.6 million.
Zanganeh stated that OPEC members and non-OPEC producers ought to cooperate if they wish to attract oil investment.
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