Iran: Oil Prices to Stand above $50

Iran: Oil Prices to Stand above $50

Oil prices will stand above 50 dollars a barrel in light of cooperation on the non-OPEC side, Zanganeh told the state-run TV after participation in the 171st OPEC meeting in Algeria.

He also said that OPEC members showed that despite rivalry and harsh political differences, they can cooperate and have engagement, adding that the OPEC had in its November 30 meeting made a major decision, showing its livelihood.

"OPEC has been passive in the market for more than two years and certain groups claimed it is no longer alive," Zanganeh underscored.

He said the OPEC members will cut their production by 1.2 million barrels per day, thus bringing the OPEC output to 32.5 million barrels per day.

All countries, excluding Iran, will have to cut 4.5 percent of their reference production level, which is the October output, added the minister.

In its 171st ordinary meeting on Wednesday, November 30, OPEC agreed to Iran's share of 3.9 million barrels per day in its total output.

The petroleum ministers of the OPEC agreed to cut 1.2 million barrels a day from the Organization's present output.

After the OPEC meeting, global oil prices surged 15 percent, with Brent crude rising from $46 per barrel up to $53.77 per barrel by Thursday afternoon. 

Source:Fars