Iran General NewsIran's Ahmadinejad says oil price artificial

Iran’s Ahmadinejad says oil price artificial


ImageAFP: The current high price of oil is artificial and the market is well supplied with crude, Iranian President Mahmoud Ahmadinejad said on Tuesday, pinning the blame on the sliding dollar.

ImageTEHRAN (AFP) — The current high price of oil is artificial and the market is well supplied with crude, Iranian President Mahmoud Ahmadinejad said on Tuesday, pinning the blame on the sliding dollar.

"The rise in consumption is lower than the rise in production," Ahmadinejad told a meeting in the city of Isfahan of the Organisation of Petroleum Exporting Countries' (OPEC's) fund for international development.

"The market is well supplied but prices are rising and this situation is artificial and imposed" by world powers.

Ahmadinejad, who is president of OPEC's number two producer, has repeatedly said that the current high price of oil is not based on fundamentals and driven largely by the weakness of the dollar.

"Certain hands, for political and economic ends, are controlling the price in an artificial manner," he said.

Ahmadinejad also said "certain powers" were keeping an artificial oil price to "fund the costs of their wars and occupations and to justify investments to exploit new sources of energy at the bottom of the oceans, at the poles and elsewhere."

Oil prices have hit record highs of close to 140 dollars a barrel.

In Asian trade on Tuesday, the main New York futures contract, light sweet crude for July delivery, dropped 15 cents to 134.46 dollars per barrel after striking an intraday record of 139.89 dollars on the New York Mercantile Exchange.

Ahmadinejad's comments came a week ahead of a meeting orgainsed by OPEC kingpin Saudi Arabia in the Red Sea city of Jeddah to bring together major oil producers, including those outside OPEC, and consumers to discuss oil prices.

OPEC, which pumps some 40 percent of oil supplies and has been widely blamed for the five-fold rise in prices since 2003, insists the oil market is well supplied and that current prices do not reflect market fundamentals.

Ahmadinejad reiterated that the fall in the dollar was a prime cause of the world's economic problems, saying it had affected "the world economy and in particular the economy of world energy exporters."

Again showing his disdain for the greenback, Ahmadinejad reaffirmed his proposal to create a completely new currency which OPEC countries could use in oil transactions.

"The hard currency reserves of OPEC countries have been heavily affected" by the fall in the dollar, he said.

"I repeat my suggestion made six months ago at the OPEC summit in Riyadh to create a basket of credible currencies which would be the basis for oil transactions," said Ahmadinejad.

"Or alternatively, that OPEC countries create a new currency for their transactions."

Latest news

Iran’s Regime Inches Toward Nuclear Weapons

Iran’s regime is once again at the center of a dangerous escalation of the proliferation of nuclear weapons. A...

US Congress Expresses Support for Iranian People’s Quest for a Democratic, Secular Republic

Several bipartisan members of the U.S. House of Representatives have presented a resolution (H. RES. 100) supporting the Iranian...

Wave Of Poisoning Attacks Against Schools Leave Hundreds Sick

Iran has been shaken for three months by serial poisoning attacks against all-girls schools, which has left more than...

Iranian Security Forces Beat Baluch Doctor To Death

On Thursday, February 23, activists in Sistan and Baluchestan provinces reported the news of the death of Dr. Ebrahim...

World Powers Should Hear The Voice Of Iranians, Not Dictators And Their Remnants

Iran’s nationwide uprising continues despite its ups and down. The clerical system’s demise no longer seems a dream but...

The Rial Continues To Sink, Hits Record 500,000 Marks Against The Dollar

The US dollar increased in price by more than 11 percent in February and grew to more than 500,000...

Must read

Iraq executes 42 ‘terrorism’ convicts in a week

AFP: Iraq executed 42 "terrorism" convicts over the past...

Cases of cholera detected in Iran: health minister

AFP: A number of cholera cases have been detected...

You might also likeRELATED
Recommended to you