Iran not upset with OPEC’s decision to keep production level
Tehran, Iran, Nov. 28
By Milad Fashtami - Trend:
Iranian Oil Minister Bijan Namdar Zanganeh said that Tehran has no problem with OPEC's decision to keep the level of oil production.
"This was not what we wanted, but still we are not upset with the decision," he said, Tasnim News Agency reported on Nov. 28.
At OPEC's 166-th meeting in Vienna on November 27, the member countries decided to keep oil production quota unchanged at the level of 30 million barrels per day.
In taking this decision, OPEC member countries confirmed their readiness to respond to developments that could have an adverse impact on the maintenance of an orderly and balanced oil market.
"The OPEC has decided to keep its current production level and wait to monitor the market's reaction to the prices," Zanganeh explained.
He went on to note that OPEC members stressed on the need for further among members.
Saudi Arabia and the United Arab Emirates announced on Nov. 26 that they won't pursue a production cut at the Nov. 27 meeting.
But after a meeting with his Saudi counterpart, Zanganeh said on Nov. 27 that Tehran and Riyadh's views are close.
Zanganeh was quoted as saying before the meeting that, "Some of the members say that the organization should keep its current quota, but the analysts believe that the supply is more than demands, and the situation will be worst next year."
OPEC oil basket price dropped $2.9 to $70.8 per a barrel on Nov.27, with the failing of the Cartel's meeting to cut oil output.
OPEC oil basket price was $107.89 in mid-June, but has been in dramatic decline, especially after October.
OPEC oil basket is currently made up of the Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).
Iran and Venezuela wanted to lower the Cartel's oil output and set a new ceiling level below the current 30 million barrels per day (mbpd) level.
Despite the ceiling level of 30 mbpd by OPEC, 12 members of this cartel produced 30.253 mbpd in October, according the OPEC's latest monthly report.
This is while 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.
Saudi Arabia as the biggest OPEC producer isn't keen to keep oil production low to protect their share in international markets.
A falling OPEC oil price to the verge of $70 has occurred while some members suffer from budget deficit. Iran's yearly budget was set based on $100/barrel.