Reuters: Iran's oil minister said on Sunday the stronger dollar was behind falling oil prices, and said the market was still oversupplied with oil as OPEC's decision to cut output had not been fully implemented.
TEHRAN, Sept 14 (Reuters) – Iran's oil minister said on Sunday the stronger dollar was behind falling oil prices, and said the market was still oversupplied with oil as OPEC's decision to cut output had not been fully implemented.
The Organisation of the Petroleum Exporting Countries agreed at a meeting last week to reduce the group's output by 520,000 barrels per day over 40 days, after crude prices slid from a record above $147 a barrel in July to near $100 a barrel.
"The main reason for the fall in oil prices in the markets is the change of rate of the American dollar," Iranian Oil Minister Gholamhossein Nozari said in comments carried by the Oil Ministry's news website SHANA.
"There is still surplus oil in the market because OPEC's decision not to supply extra oil in OPEC's 149th meeting has not yet been completely implemented," the minister said, referring to OPEC's meeting last week in Vienna.
"We have time to make a decision for the oil production ceiling at OPEC's extraordinary meeting in (the Iranian month of) Azar (which runs Nov. 21 to Dec. 20)," he said in comments made to reporters.
OPEC is expected to meet again on Dec. 17.
Traders say oil prices have tumbled about 30 percent from their mid-July peak because of softening demand and a recent rebound in the U.S. dollar against other currencies. (Reporting by Zahra Hosseinian, writing by Edmund Blair, Editing by Richard Hubbard)
