28 Mar 2024
Thursday 3 December 2015 - 15:31
Story Code : 191248

Iran says most OPEC states support cuts

Iran says most OPEC states support cuts
Iran said on Wednesday that a majority of member states of the Organization of Petroleum Exporting Countries (OPEC) support reducing the Organizations production to maintain prices.

Most OPEC members excluding Saudi Arabia and the Persian Gulf littoral states agree with reducing oil production to maintain prices, said Mehdi Asali, Iran's national representative to OPEC.

Nevertheless, those countries that approve of a production cut can do nothing to that effect without first receiving the agreement of Saudi Arabia and its allies, Asali added.

He further said Saudi Arabia and its allies support maintaining OPECs current quota even if this leads to further drops in oil prices. This, the official said, is in line with their long-term interests.

Oil prices have crashed from around $115 a barrel in June last year to under $45 a barrel now.

Asali said the management of supply is presently the most important challenge that OPEC is facing, adding that the Organizations member states still need to devise an agreement on how to manage supplies to help stabilize the market.

He warned that the market still faces the risks of further falls in prices if non-OPEC producers continue to increase production as a result of lower operation costs.

The prices can only rise if the current drop in US production of unconventional oil continues and OPEC also returns to its previous production quota, Asali added as quoted by Shana news agency.

These comments follow remarks by Irans Oil Minister Bijan Zangeneh earlier today that he has called on OPEC in a new letter to cut its production by 1.3 million barrels a day.

Zangeneh also said he has told OPEC member states in his letter that they should give way to Irans incoming extra oil barrels.

He emphasized that Iran as he had emphasized before will not require any authorization to increase its oil production once the sanctions are lifted.

He said forcing Irans oil out of the market was an instance of a cruel and illegal behavior, and that Tehran is determined to boost its oil production to levels that existed before the implementation of US-led sanctions against the country.

The letter came as OPEC will meet in Vienna on Friday to discuss market conditions.

By Press TV
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