Holding OPEC emergency meeting may further decline oil prices
Baku, Azerbaijan, Sept. 15
By Fatih Karimov - Trend: Holding an emergency meeting by the Organization of Petroleum Exporting Countries (OPEC) may further decline oil prices, said Mehdi Hosseini, Chairman of the Oil Contract Restructuring Committee at the Iranian Ministry of Petroleum.
With its low production, Iran cannot withstand some major producers within the organization with 14-15 million barrels of output per day, Iran 's Mehr news agency reported Sept. 15.
Currently, supply has surpassed demand in the market, so that some 1.5 million barrels of surplus oil is in the market, he added.
Holding an emergency meeting by OPEC may even decline prices if no outcome on output decline is reached, he said. However it is expected that prices will not fall further at least over the next few months.
"Large international oil companies, supported by their governments, do not want oil prices to fall," he said.
It is expected that oil price will rise in the next two or three years and reach $70-$90 per barrel, he noted.
Meanwhile, Iran 's Oil Minister Bijan Zanganeh said in August that holding an emergency OPEC meeting may be "effective" in stabilizing the oil price.
Last week, Iran cut the quarterly price differential for its flagship light crude against Saudi's Arab Light to the lowest in three years.
The price cuts come as Asia 's economies slow and amid discussions for next year's supplies between producers and refiners. Also, Iran is looking to elbow its way back into its previous market share once sanctions over Tehran's nuclear program are lifted, expected by the middle of next year.
Edited by CN