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Iran has no unsold oil

Oil&Gas Materials 15 July 2011 12:46
Iran reports that every drop of its oil sells, while there are about 60 million barrels of surplus oil throughout the world
Iran has no unsold oil

Azerbaijan , Baku, 15 July/ Trend D.Khatinoglu/

Iran reports that every drop of its oil sells, while there are about 60 million barrels of surplus oil throughout the world, Mehr news agency reported quoting Iran Oil Ministy caretaker Mohammad Aliabadi as saying.

Condemning Saudi Arabia's desicion to increase its oil production level, Aliabadi said that there is no reason or necessity to increase oil production economically and technically.

"About 60 million barrel of surplus oil [existing in the world] shows that there is no need to increase oil production," he said.

Aliabadi underscored that oil is a strategic commodity and that the price of oil is fixed by market conditions, and not by increasing or decreasing oil-production levels.

Saudi Arabia has a production capacity of about 2 to 2.5 million barrels of surplus oil and is keen to boost its oil production to keep the price of oil lower in international markets. Iran opposes this plan.

"Tehran would strongly confront any possible move by the oil producing countries to affect market prices," Aliabadi said on June 22 alluding to Saudi Arabia's surplus production, which faced protests from some OPEC members during the last ministerial meeting of the cartel in Vienna.

Despite Iran's opposition, Saudi Arabia already planned to boost output to 10 million barrels a day in July, the highest level in more than two decades.

However, some OPEC members and oil consumers say that the high price of oil can damage the world economy long-term.

The International Energy Agency (IEA) decided to release crude from Strategic Petroleum Reserves last month to keep oil prices lower, but Iran says this would damage the balance in the oil market.

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