New Delhi, Sep 7: Iran Oil Minister Gholam-Hossein Nozari has said his country will pursue a fair oil price at the upcoming OPEC meeting on Sep 9 in Vienna indicating that he may pursue production cuts. Mr Nozari has previously been reported as saying that the 100 dollars per barrel price is the minimum acceptable price for oil. The Organization of Petroleum Exporting Countries (OPEC) must deal with excess supply of oil at its next meeting, he stressed.
Mr Nozari, who will leave Tehran on Tuesday to attend the 149th OPEC meeting in Vienna, reported that the costs of oil production have increased nearly 25-30 per cent, while oil exporting countries face declining prices, Press TV news network said. The Iranian oil minister said if the current declining trend in oil prices continues, it will paralyze some producers due to the high cost of maintaining oil production facilities.
In August, the OPEC pumped almost one million barrels per day (mbpd) more than its target of 29.67 mbpd, according to Petrologistics, a consultant that tracks OPEC supply.
As a result of the increase in OPEC oil production, particularly by Saudi Arabia which has been under the US pressure, and the decline in world demand, oil prices have dropped almost 28 per cent.
After a record high price of 147.27 dollars per barrel (recorded on July 11), prices have doftened with the New York Mercantile Exchange (NYMEX) trading at 106.50 dollars per barrel on Friday.
Iran's OPEC Governor, Mohammad Ali Khatibi, has also voiced concern about excess supply of oil in the market, and has asked OPEC members to stick to their production quotas.
Mr Khatibi added that at the upcoming Vienna OPEC meeting, the oil cartel must stress the importance of a reduction in oil production.