Wednesday, September 28, 2022

Real Oil Price is over $70 per Barrel: Iranian MP

An Iranian lawmaker said the real oil price is more than $70 per barrel, and urged the OPEC’s member states to agree on adopting an effective strategy in their upcoming meeting in Vienna to raise the crude value by preserving the balance in oil production.

The spokesman for the Iranian Parliament’s Presiding Board, Behrouz Nemati, said the real oil price surpasses $70 per barrel, calling on the OPEC’s member states to agree on an effective strategy in their forthcoming ordinary meeting in the Austrian capital of Vienna on May 25 to achieve the price target by sustaining the balance between themselves in crude production.

According to a Farsi report by ICANA, Nemati said it is likely that OPEC members decide to extend the deal to freeze oil output for another couple of months.

“Currently, a balance has been attained between OPEC members in terms of crude production, which will help regulate the global oil market. This balance is required to be maintained in the future.”

The new atmosphere pervading the market requires the OPEC members to be committed to the oil output freeze deal and place adopting strategies to regulate the market on agenda, he stressed.

“Real oil price exceeds $70 per barrel. It does not stand at $50 or $55 per barrel.”


OPEC’s Leniency towards Some States

He noted that currently, a number of OPEC members’ oil production surpasses their output quota, adding the organization is, at present, showing leniency towards a number of its member states such as Iraq, which is struggling with a host of internal problems, allowing them to raise their output far above their production ceiling.

Nemati said OPEC’s influential members have a determining role in implementing and maintaining the new system.

“Given the talks held in previous OPEC meetings, the freezing trend would, most probably, continue in the future, which would help the oil market maintain its stability.”


Oil Freeze Commitments

Nemati stressed that Iran has been and will be committed to the recent agreement by the organization’s members on freezing oil output quota, adding OPEC member states will support any decision on extending the deal to freeze their output as they seek to regulate the oil market and prevent any probable drop in crude prices.

The dominance of the economic spirit in ensuring countries’ stability and fiscal sustainability, over the political spirit, can guarantee a bright future for the oil market.

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