23 August 2011
TEHRAN- The economic austerity measures adopted by European countries is a major reason for the recent slump in oil price, Iran's OPEC governor Mohammad-Ali Khatibi stated.
Khatibi also said that the fall of U.S. and EU stocks had a considerable impact on oil prices, Mehr news agency reported on Monday.
"Oil has fallen recently along with stocks because of concerns about the global economy", he cited.
Referring to the request of some OPEC members and western countries for increasing output ceiling of OPEC in the 159th meeting of the group in early June, Khatibi emphasized that the recent drop in the oil price confirms that the world has no need for more oil supply.
In the 159th meeting of the OPEC Conference in Vienna in early June, although some member countries tabled a proposal to increase the Organization's overall output ceiling, but Iran as a rotating OPEC president opposed the proposal. So no formal decision was reached on a new production agreement for the time being.
"Current economic recession and austerity plans adopted by consuming countries caused the decrease in oil demand", Khatibi added.
He went on to say that, not only the global markets witness no shortage of oil, but a spare supply of crude leads to increase in emergency oil stockpiles by consuming countries.
-- Emergency meeting probable if price fall continues
OPEC ministers may hold an emergency meeting if oil prices continue to fall, Khatibi told SHANA news agency on Monday.
"Iran as the president of OPEC closely monitors the oil market and if oil prices reach a worrying low level, there is a possibility for holding an emergency meeting", he said.
TEHRAN- The economic austerity measures adopted by European countries is a major reason for the recent slump in oil price, Iran's OPEC governor Mohammad-Ali Khatibi stated.
Khatibi also said that the fall of U.S. and EU stocks had a considerable impact on oil prices, Mehr news agency reported on Monday.
"Oil has fallen recently along with stocks because of concerns about the global economy", he cited.
Referring to the request of some OPEC members and western countries for increasing output ceiling of OPEC in the 159th meeting of the group in early June, Khatibi emphasized that the recent drop in the oil price confirms that the world has no need for more oil supply.
In the 159th meeting of the OPEC Conference in Vienna in early June, although some member countries tabled a proposal to increase the Organization's overall output ceiling, but Iran as a rotating OPEC president opposed the proposal. So no formal decision was reached on a new production agreement for the time being.
"Current economic recession and austerity plans adopted by consuming countries caused the decrease in oil demand", Khatibi added.
He went on to say that, not only the global markets witness no shortage of oil, but a spare supply of crude leads to increase in emergency oil stockpiles by consuming countries.
-- Emergency meeting probable if price fall continues
OPEC ministers may hold an emergency meeting if oil prices continue to fall, Khatibi told SHANA news agency on Monday.
"Iran as the president of OPEC closely monitors the oil market and if oil prices reach a worrying low level, there is a possibility for holding an emergency meeting", he said.
© Tehran Times 2011
