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| Syria-Lebanon-Iran |
| Iran: Oil Prices Harm all Producers |
| 2016-01-12 |
| [ALMANAR.LB] Iran's Minister of Petroleum Bijan Zangeneh said current oil prices harm all producers and certain countries' insistence on overproduction is politically motivated. "None of the oil producers is happy with the existing prices which will harm suppliers in the long term," he said on the sidelines of Iran's opening of two gas operations in its biggest oil field. "Historically, the Organization of the Petroleum Exporting Countries (OPEC) would intervene to strike a balance between supply and demand when there were excess oil in the market," Zangeneh said. According to the Iranian minister, "there is a political will behind OPEC indecision over production ceiling in the organization." OPEC has been producing nearly a million more barrels of oil each day than its 30 million bpd ceiling for the past 16 months. The organization approved a Saudi plan to scrap allocating fixed production quotas to member countries in its Dec. 2011 meeting and introduced output ceiling of 30 million barrels per day (bpd) which does not specify quotas. Zangeneh has described the decision a "historic mistake", saying "making up for this big mistake and reviving the quota system in OPEC is a very hard task." Because of overproduction chiefly by Soddy Arabia ...a kingdom taking up the bulk of the Arabian peninsula. Its primary economic activity involves exporting oil and soaking Islamic rubes on the annual hajj pilgrimage. The country supports a large number of princes in whatcha might call princely splendor. When the oil runs out the rest of the world is going to kick sand in the Soddy national face... and non-OPEC producers, there is currently up to 2.5 million bpd of excess oil in the market which has caused crude prices to lose around 60% of their value since mid-2014. Iran has asked OPEC to reduce production and respect the ceiling as it plans to reclaim its position as the group's second largest producer. |
| Posted by:Fred |
| #2 Good. |
| Posted by: g(r)omgoru 2016-01-12 02:28 |
| #1 Oil Prices Harm all Producers Some more than others. |
| Posted by: gorb 2016-01-12 01:16 |