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Iran: OPEC members not to decrease production at $60-70 PB range
Tehran, Aug 1, IRNA – Iran’s representative at OPEC Board of Directors said here Friday at oil sale rates’ ranging between US $60 to 70 per barrel, probability of decision to decrease production at OPEC’s September meeting is ruled out.
Seyyed Mohammad-Ali Khatibi Tabatabaie referring to the ongoing global economic recession added in an interview with IRNA, “Yet, if the oil sale prices would decrease to lower levels than the current 60 to 70 US dollars per barrel, some OPEC producers would most likely ask for further decreasing of the total OPEC production.”
He reiterated, “Some major consumers are imposing pressure over some OPEC members for increased production, arguing that under the current economic situation of the world the industrial countries will not be able to afford any higher oil prices that need to remain at a low level to assist the process of global economic recovery.”
Khatibi said that presently there is a direct relation between the world stock market share prices and the oil prices, so that when one goes up so does the other and vice versa.
He emphasized the need for each OPEC member’s abiding by the share it has in total production and decreasing it if the OEPC would decide to do so, adding, “Emphasis on these matters has been made at every OPEC meeting and that the prices would raise if entire members would truly do so.”
According to Khatibi, decision to further decrease production would mainly impose pressure over those members that have thus far fully abided by OPEC decisions and remained faithful to their ratios for production.
Iran’s representative at OPEC Board of Directors focusing on oil market till the end of December 2009, and during the year 2010, said, “Demand would probably increase during the third quarter of the current year, but it is very unlikely that the prices would raise noticeably till the end of the year 2009.”
He added, “It is predicted that the global economic status would improve in the year 2010 and accordingly the demand for oil, too, would increase by then.”
According to some foreign economic media, OPEC members’ abiding by their ratios has become decreasing, so that the total volume of breaching the ratios is estimated to be over one million barrels per day presently.
According to these sources the extent of OPEC members’ abiding by their ratios that used to be between 85 to 90 percent has decreased to 70% today.
Between September and December 2008 OPEC members agreed in a number of phases to decrease the oil organization’s total production by 4.2 million barrels per day to avoid further price decrease, keeping it fixed at 24.8 million barrels as of January 1st 2009.
Aug 1, 2009 08:10
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