Zanganeh Oil Forecast Report Denied

Zanganeh Oil Forecast Report DeniedZanganeh Oil Forecast Report Denied

The oil ministry has rejected earlier media reports about oil price projections made by Iran's oil minister, Bijan Namdar Zanganeh.

In an official statement released on Sunday, the ministry emphasized that Zanganeh has not specified any figure for the price of oil in his recent interviews.

The statement came in response to foreign media reports stating that Zanganeh had forecast that oil prices would possibly go down as low as $25 a barrel.

On Tuesday, Bloomberg quoted Zanganeh as saying that "Iran is strong enough to withstand a deeper slump in prices even if the country must sell at $25 a barrel."

Oil has plunged by more than half since June 2014 to below $50 a barrel, pressured by a global glut and refusal by the Organization of Petroleum Exporting Countries (OPEC) to cut its output.

Iran together with Venezuela has called for OPEC, which supplies about 40 percent of the world’s oil, to work together to support a recovery in crude. The US shale boom has contributed to the global glut, and Qatar and the United Arab Emirates estimate the oversupply at about 2 million barrels a day.

OPEC announced last November it would keep output steady at 30 million barrels a day, despite pleas from some members for it to cut output to support prices and revenues.