EMEA News
Iran: OPEC Members Think $70-$80 Crude Would be "Fair"
Iran's Oil Minister Bijan Namdar Zanganeh says most of the Organization of Petroleum Exporting Countries (OPEC) members believe $70 to $80 per barrel for crude would be a "fair" price, compared to the recent weakness in prices which has seen U.S. crude dip below $40 per barrel, Bloomberg reports.
However, a global glut of oil, which contributed to oil's price sink, appears to see little relief as Iran commits itself to ramping up production in the run up to a lifting of sanctions against the country, and U.S. shale gas producers also making a return.
"Some OPEC members believed last year that lower prices could push expensive oil from the market," said Zanganeh.
“For some months we witnessed the exit of rigs from shale oil, now all of them are returning to these fields and their level of shale oil production didn’t change considerably.”
Zanganeh says his country plans to continue boosting production after sanctions are lifted in order to regain market share, a move he says Iran will follow regardless of the opinions of other countries.
"Immediately after lifting sanctions, it's our right to return to the level of production we historically had," Zanganeh said.
In the meantime, he added that OPEC is open to cooperating with non-OPEC countries on a course of action in the wake of slumping oil.
"OPEC will reach an agreement for managing the market, to make a balance between supply and demand," he said.
"But it seems we need some months to exchange views, to speak to each other and witness some changes in the international atmosphere."
Iran is reportedly producing 2.8 million barrels a day currently, with plans to increase that amount to between 3.8 million and 3.9 million barrels by March 2016.
Earlier this week, it was reported that the managing director of Iranian Oil Terminals Company had pegged Iran's current oil exports upwards of 6 million barrels per day.
