Iran sees oil price at $50-55 a barrel in 2017

Business Materials 13 December 2016 12:42 (UTC +04:00)

Tehran, Iran, December 13

By Mehdi Sepahvand, Dalga Khatinoglu- Trend:

Iran expects that oil price “would stand firmly” at $50-55 per barrel in 2017, thanks to OPEC and non-OPEC deal over the production cut, Oil Minister Bijan Namdar Zanganeh told reporters in Tehran, Trend’s correspondent reported.

“There is no obvious outlook about the oil market, but there are signs that oil price would stand at $50-55 per barrel,” he said.

Referring to implementation of the oil cut deal from January 1, 2017, Zanganeh said that the most important thing rather than figures and statistics was the achievement of agreement between OPEC and other producers to balance the oil market.

OPEC members reached an agreement on Nov.30 that cut oil output by 1.2 mb/d to 32.5 mb/d. On the other hand, 12 non-Cartel producers also reached an agreement on Dec.10 to reduce their production by 558,000 b/d, of which Russian shared more than a half of this figure.

During 13 days of December, Brent oil price increase by 15 percent to above $55.

The figure is still far below the prices in the first half of 2014, which was about $110 per barrel.