Oil price to increase: Iranian official

Oil&Gas Materials 26 July 2011 17:21 (UTC +04:00)

Azerbaijan, Baku, July 20 / Trend /

The oil prices are likely to increase due to mounting demands for oil supply on global markets, Mehr News Agency reported quoting Iran's envoy in OPEC Mohammad Ali Khatibi as saying.

"Saudi Arabia's additional export of one million barrels of heavy oil with high sulfur cannot prevent increase of oil prices on global market," he said.

The oil storage is increasing in the world and the Saudi Arabian high sulfur oil can't supply the world demands. According to current conditions the global market needs low sulfur light oil similar to Libya, he added.

The International Energy Agency refused to offer 60 million liters surplus oil to market because it knows replacing this volume in future will cost more.

He insisted Iran remains committed to OPEC production quota.