Reuters: OPEC may need to cut its oil output more but it remained too early to tell if a further reduction was needed, Iran's OPEC governor Mohammad Ali Khatibi told Reuters on Wednesday.
TEHRAN (Reuters) – OPEC may need to cut its oil output more but it remained too early to tell if a further reduction was needed, Iran's OPEC governor Mohammad Ali Khatibi told Reuters on Wednesday.
"It is too soon to say whether OPEC's November cut agreement has been successful. We should wait and see," Khatibi said.
"But if crude prices continue to fall, then an additional OPEC cut may be needed."
The producer group agreed to cut output from November 1 by 1.5 million barrels per day (bpd) after oil prices dived from a July record of $147 a barrel to less than half that. U.S. crude was trading around $68 a barrel on Wednesday.
Venezuela said on Tuesday it will propose another cut of 1 million bpd at the cartel's next meeting, which is expected to be held in December.
Iran, the world's fourth largest oil producer, has already started informing buyers that it is cutting back sales. Iran's share of OPEC cut was 199,000 bpd.
"Iran and other OPEC members have been committed to OPEC's November cut agreement," Khatibi said.
"Creating a balance between oil supply and demand is OPEC's priority."
In comments to state television on November 1, Iranian Oil Minister Gholamhossein Nozari said OPEC would hold another emergency meeting, like the October gathering in Vienna where the latest cut was agreed, if prices fell more.
He also said the group would cut output more if needed.
Iran has been producing a little more than 4 million bpd but Iranian officials have declined to announce Iran's target that was set before and after OPEC's latest production cut deal.
(Writing by Parisa Hafezi, Editing by William Hardy)
