Economy

Iran Supports Measures Aimed at Stabilizing Oil Market: Minister

Iranian Minister of Petroleum Bijan Zanganeh says the Islamic Republic supports any potential measures aimed at restoring stability to global oil markets, implying, however, that oil prices should be set at reasonable levels.

After an important meeting with visiting OPEC Secretary-General Mohammed Barkindo in Tehran on Tuesday, Zanganeh said most OPEC member states support oil prices at between $50 and $60 per barrel.

He said $55 per barrel would be reasonable, and said, “Such a price would make oil production cost-effective and beneficial for the OPEC members besides generating satisfactory revenue, and would also prevent their rivals from [unduly] raising production levels,” Zanganeh said.

Oil-exporting countries have been seeking a deal to cap production levels in an attempt to prevent a further drop in global oil prices, which in recent years saw a fall from a high of 147 dollars a barrel to a low of around 25 dollars. Saudi Arabia, however, has repeatedly hindered such a deal by insisting that Iran agree to the same low production level as that assigned for other countries.

Iran has time and again said that it is prepared to join an oil freeze plan but has argued that any such deal should take into account the special position of the country, which had been under sanctions impacting its oil production levels for a number of years.

Iran has made it clear that it would join a deal to cap production levels only after its crude production and market share reach the pre-sanctions level. Russia, a major oil producer but a non-OPEC member, has supported Iran’s position.

Elsewhere in his Tuesday remarks, the Iranian minister of petroleum said that during the meeting with Barkindo, he elaborated on the position Iran would take at the forthcoming OPEC meeting in Algeria and was briefed about the OPEC secretary general’s negotiations with other countries.

The upcoming OPEC meeting will be held on the sidelines of the International Energy Forum (IEF) in Algeria on September 26-28.

A key topic on the agenda of the talks — in which non-OPEC members will also participate — will be the promotion of stability in the oil market.

Iran, which is OPEC’s third largest producer, has been ramping up crude oil output since a nuclear agreement between Tehran and the Group 5+1 took effect on January 16, removing obstacles in the way of more crude production.

Fatemeh Askarieh

Fatemeh Askarieh is an Iranian journalist working on a range of fields including culture, art, lifestyle, cultural heritage, and tourism. She has been working with the Iran Front Page (IFP) Media Group for 10 years, and is currently the head of the Art and Lifestyle Department.

Recent Posts

Iran lifts Ban on WhatsApp, Google Play in a landmark decision

In a significant move towards greater digital accessibility, the Supreme Council of Cyberspace, chaired by…

10 hours ago

One child gets killed every hour in Gaza: UN

The United Nations agency for Palestine refugees (UNRWA) has announced that 14,500 Palestinian children have…

13 hours ago

Several killed in blast at explosives factory in Turkey

At least 12 people were killed and three others wounded after a blast rocked an…

13 hours ago

Zelensky claims over 3k North Korean soldiers killed, wounded in Russia

The number of killed and injured North Korean soldiers fighting alongside Russian forces in Kursk…

13 hours ago

Iran Judiciary: No complains lodged against ex-FM Zarif over dual citizenship

The spokesperson for Iran’s Judiciary clarified that no complaints have been filed against former Foreign…

13 hours ago

Iran to unveil first AI-equipped oil well

The Iranian Vice President for Science, Technology and Knowledge-Based Economy has announced the inauguration of…

16 hours ago