Iran General NewsIran sees oil at around $40 in 2009

Iran sees oil at around $40 in 2009

-

ImageReuters: Iran's Oil Ministry anticipates a crude oil price of about $40 a barrel in 2009, Oil Minister Gholamhossein Nozari was quoted as saying on Saturday, suggesting Tehran does not expect the market to rebound soon.

ImageTEHRAN (Reuters) – Iran's Oil Ministry anticipates a crude oil price of about $40 a barrel in 2009, Oil Minister Gholamhossein Nozari was quoted as saying on Saturday, suggesting Tehran does not expect the market to rebound soon.

Nozari also said crude producers outside the Organisation of the Petroleum Exporting Countries (OPEC) were not cooperating with the group in reducing output to restore stability, the official IRNA news agency reported.

U.S. light crude oil settled on Friday at around $36.5 per barrel, down more than $110 since July as the global economic downturn hit energy demand.

"In the opinion of the Oil Ministry, taking into account predictions by various international institutes, the anticipated oil price in the year 2009 will be around $40," Nozari said according to IRNA.

He said the ministry had proposed to the government that the price of oil be set at that level in the 2009-10 budget, which runs from March.

OPEC ministers agreed in December to cut production by a record 2.2 million barrels per day (bpd), taking total curbs since September to 4.2 million bpd, the equivalent of 5 percent of global oil supply.

But Nozari said supply from non-OPEC producers was expected to grow by 600,000 bpd during the year, without naming them.

"Under these conditions OPEC member countries decided to cut output but non-OPEC countries are not cooperating," he said.

Russia, the world's second-largest oil exporter, faced criticism from OPEC last month for refusing to join in the effort to support energy prices. 

Russia has said it is considering all options, including joining OPEC, to defend its national interests. However it did not make any firm pledges when OPEC ministers, meeting at Oran in Algeria in December, agreed their deepest production cuts.

Earlier on Saturday, state radio quoted Iran's OPEC governor Mohammad Ali Khatibi as saying the producer group should reduce output further to bring balance to the oil market.

On the issue of OPEC members' observance of earlier cuts before the Algeria meeting, Nozari said: "The percentage of observance by 11 OPEC members, with the exception of Iraq, was in all reported as 85 percent. The worst performance belonged to Algeria which did not have any cut in its oil production."

(Reporting by Hashem Kalantari; Writing by Fredrik Dahl; Editing by Anthony Barker)

 

Latest news

The Role of Students and Universities in Iran’s Nationwide Uprising

In the national uprising of the people of Iran, which started in mid-September this year, the students played a...

Snapback Sanctions, a Must Response to Iran’s Human Rights Abuse and JCPOA Violations

The protests in Iran have been going on for more than two months, even though the regime is cracking...

Growing Disintegration Among Iran Regime’s Forces

Iran has been shaken by a wave of nationwide protests since mid-September. The trigger was the death of the...

Grim Tidings for Iran’s Regime After Approval of UN Fact-Finding Mission

After many discussions and debates, the United Nations Human Rights Council has approved a fact-finding mission to investigate the...

Iranian People’s Resistance Changed the Appeasement Policy

Soon after the new US government started its obligations in January 2021, hand in hand with the European governments...

Khamenei’s Disgraceful Campaign Against Piranshahr and Javanrud, Who Will Be the Loser?

On the 67th day of Iran’s revolution, the Iranian regime attempted to put a halt to the protests in...

Must read

Christian pastor – once sentenced to death in Iran – is released, group says

CNN: A Christian pastor sentenced to death in Iran...

ENI sees Iranian crude deal running for 3 more years

Reuters: Italy's energy major Eni will continue to receive...

You might also likeRELATED
Recommended to you