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Talks With Saudis Could Help Stabilize Oil Market

Talks With Saudis Could Help Stabilize Oil MarketTalks With Saudis Could Help Stabilize Oil Market

The surest strategy for the Organization of Petroleum Exporting Countries to prosper would be to cooperate with each other and a lack of harmonious relationship can be a recipe for disaster, Iran's oil minister said on Saturday.

"The Islamic Republic of Iran is willing to hold talks with OPEC Arab members, especially Saudis, to settle the chaotic oil market," Bijan Namdar Zanganeh was quoted as saying by Mehr News Agency.

According to the oil minister, there will be no limitations to negotiate with OPEC Arab members in the upcoming OPEC meeting to be held in Vienna, Austria, on 4 December 2015.

Expressing lack of knowledge about a scenario to lower oil production ceiling in the 168th OPEC meeting, he added, "Plans have been made to consult all oil exporting states in the next OPEC meeting to pave the way for stabilizing the international oil market by using a win-win approach."

Stressing that Iran and Saudi Arabia have a lot in common when it comes to oil export, he said, "The two states will both benefit from the rise in OPEC market share. Furthermore, neither of them likes to miss the ideal opportunity."

Iran plans to produce 3.8 million to 3.9 million barrels of oil a day by March, with output rising by 500,000 barrels a day soon after sanctions are lifted and by 1 million barrels within the following five months.

An Oil Ministry official has declared that the Islamic Republic will reach the 500,000-bpd milestone by late November or early December even before most western sanctions are lifted.

The global oil benchmark, Brent Crude, stood at around $115 in June 2014, but prices sank to $40-50 in early 2015 after OPEC member-states, particularly the world's biggest crude exporter Saudi Arabia, decided to keep production unchanged in November 2014.

 

Financialtribune.com