News ID: 173742
Published: 0325 GMT December 13, 2016

Zanganeh says oil to stay between $50-$55

Zanganeh says oil to stay between $50-$55

Iran’s Oil Minister Bijan Namdar Zanganeh said he expects the price of oil to remain within the margin of $50 to $55 per barrel following a recent deal between OPEC and non-OPEC producers to curtail output.

"There are already indications that the price of oil is rising in global markets.  Predicting the prices is difficult but I am certain that the prices will remain between $50 and $55 per barrel," Zanganeh told reporters after a meeting with the visiting Russian Energy Minister Alexander Novak, Press TV reported.

"All signs show the prices will rise and this is while none of the producers have reduced their production by even one single barrel."

Non-OPEC producers announced this past Saturday that they would cut their output by a total of about 560,000 barrels a day (bpd). The cuts combined with the reduction promised by OPEC last month showed an immediate effect by sending oil prices above $50 per barrel over the following days. 

Earlier on November 30, the OPEC announced a landmark deal to cut oil output to a ceiling of 32.5 million barrels a day (mbd).

The Organization announced that it had agreed to decrease its production by 1.2 mbd to contain crude supply glut.

It exempted key member Iran from cutting output, allowing the country to increase its crude production by 90,000 bpd to reach pre-sanction output levels of 4 mbd. Libya and Nigeria were also allowed to keep their current production levels.

"The agreement [among OPEC member states] showed that the Organization is still determined to struggle for a joint goal," Zanganeh further told reporters.

The oil market, he added, has also clearly realized this.

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