Tehran, Iran, Nov. 18
By Milad Fashtami - Trend:
The members of Iranian parliament's Energy Commission call on OPEC members to decrease oil production level to prevent falling oil price from falling more.
Two Energy Commission members told Trend on Nov.18 that low oil price is not favorable for OPEC members and the cartel should take measures to support higher oil prices.
According to OPEC's latest monthly report, the 12 members of the cartel decreased oil output by 226,400 barrels to 30.253 million barrels per day, while the ceiling level of oil output should have been at 30 million barrels per day due to the agreement among the members.
On the other hand, OPEC says that the demand for OPEC crude is estimated at 29.5 mbpd in 2014. In 2015, the figure is estimated to reach 29.2 mbpd.
The OPEC website also put the cartel's oil basket price at $73.47 per a barrel on Nov.14. OPEC is scheduled to hold a meeting among members on Nov.27.
Ali Marwi, head of the Energy Commission of Iranian parliament said that Iran demands a "serious decision" from OPEC members at the upcoming meeting.
"A serious decision needs to be made to to protect members' national interests. Most oil producers set the yearly budget based on above $80 per oil barrel price. OPEC should take a concrete step to support high oil prices, namely a price which be logical for both oil producers and consumers," he said.
Previously, Iranian government has announced that a $100-oil price is reasonable and logical.
Another member of Energy Commission Abdolkarim Jomeiri told Trend that supporting of stability in the global the oil prices are one of OPEC's duties.
"OPEC members should behave in a way that makes balance between oil supply and demand, and Iran calls on the OPEC members to decline crude oil production," he said.
However, Robert Biglerian, another member of Energy Commission in Iran's Parliament told Trend on Nov.17 that it seems the major agenda among the global oil producers is not the falling oil price, but preserving their own shares in oil markets.
"I don't believe any OPEC member can agree with declining its oil output in the current situation", he said.
Iranian Oil Minister Bijan Namdar Zanganeh told Trend on Nov.13 that Iran will make information exchange with other 11 members to evaluate the situation to make decision how OPEC can stabilize the oil prices.
"I think OPEC members are at a maturity level that can take important measures in sensitive situations, in favor of the members' interests," he underlined.
Zanganeh also said that Iran will compensate for the effect of low oil revenues on upstream projects by issuing credits from the National Development Fund to the contractors which are engaged in upstream projects.
Iran's yearly budget is based on a $100/barrel oil price, but according to OPEC's official website, its oil basket price dropped to $73.90 on Nov.17 compared to $107.89 in mid-June.
According to the yearly budget, Iranian government should deliver 29 percent of oil revenues to the National Development Fund of Iran (NDF) to be used as financial facilities in the private sector's projects. According to estimations, Iran would face a $2-billion deficit in oil revenues to meet the considered figure in the budget law.
The Fund's assets were $64.4 billion until August, the chairman of the board of directors of the NDF Qasem Hosseini said.
Robern Biglerian said that Iranian government hasn't asked neither the parliament's approval for funding the projects from NDF assets, nor had it reviewed the budget law which is set based on $100- oil price yet. Biglerian said that Parliament is ready to consider any measures to solve oil price-related problems.