Azerbaijan, Baku, Dec.17 /Trend, A.Yusifzade /
The recent surge in oil prices is not the result of fundamental factors, Iran's governor to the Organization of the Petroleum Exporting Countries (OPEC) Mohammad Ali Khatibi was quoted by Shana as saying.
"Such factors as dollar weakness, extreme cold in Europe and America and seasonal changes influenced on the oil price increase", Khatibi said.
In an interview with Shana, Mr. Khatibi talked about the 158th OPEC meeting decisions in Quito in December 11, noting some elements including dollar depreciation and cold weather in Europe and the U.S cause surging oil prices.
Stating that OPEC maintained its production ceiling unchanged for the seventh consecutive times, Khatibi said that currently, oil supply is high and crude oil inventories have increased to equivalent of 60 days of consumption. So, the oil market is not facing shortages and surging oil prices result from the factors beyond OPEC's control rather than the market fundamentals.
Iran's governor to OPEC pointed out that OPEC's budget for 2011 was ratified at the 158th meeting of OPEC's 12 members without any change in the 2009 and 2010 figures.
Referring to inventories, supply and demand as the other topics on the Ecuador's OPEC agenda, Khatibi said that projections show that world oil demand will increase by 1.2 million barrels a day next year. OPEC's call will be 200,000 barrels per day.
Noting that OECD's crude oil inventories has roughly remained unchanged, the official noted that floating oil inventories, especially oil products inventories, have recently fallen.
Khatibi said that according to the 158th OPEC meeting's agreements, from now on ordinary meetings would be held in June and December each year and extraordinary meetings could be held depending on emergency conditions in the oil market.
"Regarding a long period between the 158th meeting in December 2010 and the 159th meeting next June, the members authorized OPEC's president to call on holding an extraordinary meeting in consultation with the OPEC' Secretary General and the members if the oil market to be faced with an unusual condition," Khatibi said.
Earlier, Iranian Oil Minister Massoud Mirkazemi said that Tehran favors an increase in global oil prices, adding that crude oil worth $100 a barrel is an appropriate price.
"One hundred dollars as a nominal price is good, but real prices are weak. The market is better than before. But it is not good enough because the growth rate of the global GDP is low," the Iranian minister said.OPEC, supplier of about 40 percent of the world's oil, has not changed quotas since late 2008, when it announced the biggest reduction in output as global demand collapsed.
OPEC's next meeting is scheduled for June 2 in Vienna, its home.
Iran possesses roughly 10 percent of world oil reserves. In 2009, Iran's revenue from oil exports reached $69.1 billion and it exported approximately 3.8 million barrels per day.
During the 157th meeting of the organization in October, OPEC members elected Iran to hold the organization's presidency as of January 2011.