Iran's oil price drops below $37/barrel
Tehran, Iran, December 7
By Mehdi Sepahvand - Trend:
After OPEC members failed to reach an agreement on production ceiling on Dec.4, Iran's crude price dropped to below $40 per barrel, a further drop following the past one year's free fall.
In deals ending in November 27, each barrel of the Iranian light crude was sold at $39.19 while each barrel of the country's heavy crude was sold at $36.30, Mehr news agency reported December 7.
According to the latest statistics of OPEC, the cartel's oil basket price was sold at $37.89 on Dec.3.
Iran has said it will boost its output by one million barrels a day when it is free of economic sanctions. It has called on other OPEC members to cut the surplus-of-quota production they are bringing to the market.
While Iran's output has shrunk under sanctions, Saudi Arabia and Iraq have been producing more than their quota, so much so that OPEC's output now is above 31.5 mbbl/d, 1.5 mbbl/d more than its official 30 mbbl/d ceiling.
In its recent summit on December 4, the OPEC failed to put a new ceiling to its output.
The average price for the Iranian light crude in the past one year has been $51.70 per barrel, while the heavy crude has been sold at $49.69 per barrel in average.