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Iran: $100 a barrel fair price for crude

Oil&Gas Materials 8 March 2010 20:51 (UTC +04:00)
An Iranian oil official says the world's oil industry executives and experts consider 100 dollars a barrel to be a fair price for crude in today's market.
Iran: $100 a barrel fair price for crude

An Iranian oil official says the world's oil industry executives and experts consider 100 dollars a barrel to be a fair price for crude in today's market, Press TV reported.

"The average price of crude in the international market has been $75 a barrel since the beginning of the year, when its fair price should be around $100 a barrel," Iran's envoy to OPEC, Mohammad Ali Khatibi, told Mehr News Agency on Monday.

He noted that factors such as global inflation and the fluctuation of the dollar should be considered when setting the price for crude.

"The actual price of crude oil in the current market considering the global inflation and currency fluctuations is, compared to the 1970s, actually only 14 dollars a barrel," Khatibi added.

The official went on to say that stability of the oil market would serve the interests of both oil producers and major consumers.

"Oil market stability can be achieved through cooperation between all parties involved in the market, including OPEC and non-OPEC producers as well as consumers," he said.

According to OPEC's website, historically, most non-OPEC producers have taken advantage of the organization's voluntary production cuts by increasing their own production whenever possible.

As a result, the market share of non-OPEC producers rose for a number of years, but oil prices remained at relatively low levels and the markets were less stable than they could have been.

However, the oil slump of 1998 and early 1999 reinforced OPEC's constant message that oil market stability can only be achieved through cooperation between OPEC and non-OPEC oil producers.

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