Sun May 7, 2017 10:41AM
Iran’s Petroleum Minister Bijan Zanganeh says the country would favor oil prices at around $55 per barrel. (Photo by Shana)
Iran’s Petroleum Minister Bijan Zanganeh says the country would favor oil prices at around $55 per barrel. (Photo by Shana)

Iran has refreshed its consent with the price of oil around $55 per barrel with the country’s Petroleum Minister Bijan Zanganeh stressing that there is already a consensus among producers to keep the prices at the same level by extending the current production cuts. 

“All signs show that the producers want to extend the production cuts,” Zanganeh told Iran’s Shana news agency as telling reporters on the sidelines of 22nd Iran International Oil, Gas, Refining and Petrochemical Exhibition – the Iran Oil Show – that opened in Iran’s capital Tehran on Saturday.

“I believe that $55 per barrel is an adequate price for oil.” 

In February, the Iranian minister had emphasized that the price of oil above $55 per barrel would not be to the benefit of the Organization of the Petroleum Exporting Countries (OPEC).

He had warned that if oil specifically surges above $60 per barrel, the non-OPEC producers would increase their production to benefit the most from rising prices.

Last December, OPEC clinched a historic deal with Russia and other non-members to slash global production by nearly 1.8 million barrels a day for six months starting January.

The Organization exempted key member Iran from cutting output, allowing the country to increase its crude production by 90,000 barrels per day to reach pre-sanction output levels of 4 million barrels per day.

OPEC and non-OPEC ministers are due to meet on May 25.

They appear likely to extend their agreement to limit supplies beyond its June expiry to help clear a glut, three OPEC delegates said on Thursday, downplaying the chance of additional steps such as a bigger cut, Reuters reported.