Iran’s oil minister has said that he firmly believes that oil prices could reach US$60 a barrel in the latter part of 2009, according to news gathering agency Reuters.
Speaking at a news conference Gholamhossein Nozari said the $60 price could come as early as the third quarter of 2009. He also joined the chorus of other Middle Eastern oil officials and said that to ensure future supplies the price for oil should rise to around $75-80 a barrel.Â
Nozari also said that in the current climate, all oil producers should should unite in an effort to stabilise the market.
“It seems that whenever OPEC members cut output, non-OPEC members increase it. These two should cooperate with each other to stabilise the market,” he said.
In regards to OPEC production cuts, Reuters reported that Nozari said it would depend on the market.
OPEC has already agreed to reduce production by 4.2 million barrels per day since September last year. The oil cartel recently ruled out any further cuts and instead stated that it would concentrate on better compliance with the current cuts by its 12 member nations. Compliance is currently around the 80% mark.
The $60 oil price could be seen as optimistic in some quarters. Arabianoilandgas yesterday reported that the International Energy Agency had announced that oil consumption had dropped by 2.4 million barrels per day. Such a decline in demand had not been seen since the 1980s.
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