News ID: 188274
Published: 0655 GMT February 24, 2017

Zanganeh: Oil prices over $55 per barrel harmful for OPEC

Zanganeh: Oil prices over $55 per barrel harmful for OPEC

An increase in oil prices to over $55 per barrel was not in the interest of OPEC as it would lead to a rise in output by non-OPEC producers, said Iran's oil minister on Thursday.

"If oil prices specifically surge over $55 or $60 per barrel, non-OPEC producers will increase crude production to benefit the most from the price hike," Fars News Agency quoted Bijan Namdar Zanganeh as saying.

"OPEC is determined to cut production to help manage the market."

On November 30, the Organization of the Petroleum Exporting Countries agreed to cut output by 1.2 million barrels per day for the first six months of 2017, in addition to 558,000 bpd of cuts pledged by independent producers such as Russia and Oman.

OPEC Secretary General Mohammad Barkindo said that January data showed conformity from participating OPEC nations with output curbs had been above 90 percent and oil inventories would decline further this year.

Iran was exempted from the production cut as Tehran argued its output should be allowed to recover following the lifting of international sanctions in January 2015.

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