Zanganeh Considers $60 Oil Price Acceptable

Iranian Oil Minister Bijan Zanganeh said on Wednesday $60 per barrel is a good price for oil, as the market should avoid volatility.

“I believe that in this situation around $60 per barrel is a good price,” said Zanganeh, who was speaking at the International Energy Forum, Reuters reported.

India, the world’s third-largest energy consumer after the US and China, is hosting the 16th International Energy Forum Ministerial (IEF—16), that was inaugurated by Prime Minister Narendra Modi on Wednesday.

IEF aims to foster greater mutual understanding and awareness of common energy interests among its members. Its 72 member countries are signatories to the IEF Charter, which outlines the framework of the global energy dialogue through this inter-governmental arrangement.

 “I think we should look at the market not for short-term, long-term, mid-term is important for us,” Zanganeh said, adding that it is very important for producers and consumers not to have volatility in the market.

When asked if global benchmark Brent oil trading at $70 a barrel were too high, he answered, “Yes.”

Zanganeh added that India and Iran have settled the main issue on the development of Farzad B Gas Field, which has an in-place gas reserve of 21.7 trillion cubic feet, in the next two months.

ONGC Videsh Ltd the overseas arm of state-owned Oil and Natural Gas Corp, had last year made its best offer to spend $11 billion in developing the Farzad-B Gas Field in the Persian Gulf as well as in building the infrastructure to export the gas, but Iran deferred on awarding the rights of the field to the Indian firm owing to differences over investments and price of gas.

Ministers attending the forum include Dharmendra Pradhan, India’s petroleum and natural gas minister; Khalid Al-Falih, Saudi Arabia’s petroleum and mineral resources minister; Suhail Mohamed Al Mazrouei, UAE’s energy and industry minister; Bijan Namdar Zanganeh, Iran’s oil minister; Mohammed Bin Saleh Al-Sada, Qatar’s energy and industry minister; Emmanuel Ibe Kachikwu, Nigeria’s minister of state for petroleum resources; and Kosaburo Nishime, Japan’s state minister of economy, trade and industry.