TEHRAN April 14(Shana)–Iran’s minister of petroleum has called on OPEC to reduce its production by at least five percent to help shore up prices.
“Even the most conservative OPEC member states do not believe that OPEC production should exceed 30 mb/d and we believe that this amount should be cut by at least 5 percent,” Bijan Zangeneh told a press conference.
“OPEC is a place for interaction and we have no quarrel with anyone and we are for interaction and logic behavior and we will continue this behavior in the future too, but the principle is that within OPEC, influence [of member states] depends on output and surplus production capacity,” he said. “Each member state wields a single vote, but members with higher production capacity, gross domestic product (GDP), value-added, financial resources and manpower, will be stronger,” he added.
He also said that OPEC is mature enough to regulate oil market after Iran raises its production.
“OPEC is mature enough to regulate itself so that the market would not be harmed after Iran returns to its previous quota,” Zangeneh said.
He also said that two of four countries that favored the rollover of OPEC’s production ceiling in the 166th ministerial meeting of the oil producer body have now changed mind.
“Even those who want to reduce oil prices lower than what they are would fail because they cut the oil price to the minimum possible level,” said the minister.
He, however, said he could not give assurances that the prices would not fall further, noting that a “reasonable man could never give any assurance for the market.”
“Those who wanted to incur losses on us spared no efforts to that effect and we see the result now,” said Zangeneh.