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08/27/11

Iran says OPEC may cut output if prices fall more

Source: Mehr News Agency

Iran's OPEC governor announced on Saturday that if oil prices continue their downward trend under the shadow of the global economic crisis, OPEC may react by cutting its production.

However, Mohammad Ali Khatibi told the Mehr News Agency, "It is predicted that seasonal demand for oil will grow in the near future, which can trigger the oil prices up."

Khatibi predicted if the current economic crisis continues in the major oil consuming countries, especially in Europe, it's probable that oil prices fall more.

He also criticized Saudi Arabia for unilaterally increasing its oil output without a formal OPEC approval.

OPECIn the 159th meeting of the OPEC conference in Vienna in early June, some members tabled a proposal to increase the organization's overall output ceiling, however, Iran, as OPEC president, opposed the proposal. So no formal decision was reached on a new production agreement for the time being.

On an emergency meeting, Khatibi said it is OPEC ministers who should decide about an emergency meeting.

Khatibi announced on August 23 that OPEC ministers may hold an emergency meeting if oil prices continue to fall. "Iran as the president of OPEC closely monitors the oil market and if oil prices reach a worrying low level, there is a possibility for holding an emergency meeting," he said.

The next OPEC meeting will be held on December 14 in Vienna.

... Payvand News - 08/27/11 ... --



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