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Zanganeh: OPEC Emergency Meeting May Hurt Market

Zanganeh: OPEC Emergency Meeting May Hurt MarketZanganeh: OPEC Emergency Meeting May Hurt Market

Iran's oil minister said on Friday any emergency meeting of the Organization of Petroleum Exporting Countries would hurt the crude oil market if it made no decision to shore up falling prices.

Venezuela has been calling for an emergency meeting to discuss steps to prop up prices, which are at their lowest since 2003. However, Iran and Persian Gulf members of the OPEC have been rebuffing Venezuela's push for a special meeting, Reuters reported. "There should be an intention to make a firm decision in such a meeting, otherwise the meeting will have negative impacts on world oil markets," Iran's Bijan Namdar Zanganeh was quoted as saying by Shana.

"The important thing is that there must be an intention for change, but we have not yet received such a signal," he added.

Iran ordered an increase in crude output of 500,000 barrels per day last week to take advantage of the lifting of international sanctions imposed on Iran's nuclear energy program. The sanctions had cut its oil exports by about 2 million bpd.

OPEC was already pumping oil at close to record levels, before any extra Iranian crude reached the market.

The next scheduled OPEC meeting is not until June. The last extraordinary meeting to discuss a price slump, in 2008, led to OPEC's largest-ever production cut. Prices doubled within a year after that cut.

 

Financialtribune.com