TEHRAN, Iran, April 6
Trend:
The OPEC decisions and possible agreement over oil output cut may affect the oil sale, although coronavirus will also impact the process, said an Iranian energy expert.
Ali Shahroui has discussed the oil price situation in an interview with Trend.
"It's expected that Russia, the US and OPEC will agree on reducing the production by 10 million barrels of oil, and the major part of this cut will be related to Saudi Arabia and Russia," Shahroui said.
"At the moment, supply surplus in the market is around 15 million barrels; however, considering the current situation, the reducing output by 10 million barrel in short term will not increase the oil price to $40," the expert added.
"The disagreement over the output cut led to a drop in the oil prices to $30. Meanwhile, the fall of the global economy due to coronavirus crisis will affect many countries including China, but the demand for oil will increase," he said adding that due to this demand, the oil price may grow back to $40.
"Although market fluctuations in next months would affect many countries, this will not seriously impact Iran's incomes," he noted.
"Iran's economy depends even on a little volume of oil sale, so the increase in price will lead to the growth of Iran's export of oil and petrochemicals products. However, the situation may affect the global demands for petrochemical products, too," he said.