TEHRAN, IRAN, July 1
Trend:
Iran's possible return to the oil market could supply an increase in global demand, said Iran's former representative in OPEC.
"The oil market situation is relatively proper due to sharp decline of demand after Coronavirus that caused output cut by oil producers to a minimum level," said Mohamad Ali Khatibi told Trend in an interview.
"Currently demand for oil is recovering and reaching its previous level before Coronavirus and it could be stated that economic recovery is done therefore production cut by OPEC Plus should be reduced and output would increase to supply the demand. Following vaccination and the decline in coronavirus infections, oil demand grew between 5 to 6 million barrels of oil per day compared to 2020. It would naturally reduce the output cut by OPEC - Plus," he noted.
"It is a proper time for those oil countries such as Iran that are not fully present in the market and have surplus capacity could return to the market and respond to global demand. Prices are almost on a slight rise, despite the fact that OPEC - Plus approved the increase of output in its previous meeting and production increase started," Khatibi added.
He went on to say that it is necessary for the market that Iran's sanctions would be lifted, an increase of demand to 6 million barrels of oil per day in the current year is remarkable. There is a need for oil of countries with full capacity to be present in the market otherwise the world should pay higher prices for oil, currently, experts believe that oil is moving toward $100.