Extending the OPEC cuts beyond their current expiry date at the end of 2018 would seem unnecessary if oil prices keep rising, Iran’s Oil Minister Bijan Zangeneh told the Iranian oil ministry’s news service Shana on Monday.
“High oil prices, even in the mid-term, would destabilize the prices and put pressure on them against OPEC’s interests,” the official outlet of the Iranian oil ministry quoted Zangeneh as saying.
When asked about Iran’s position regarding an extension of the OPEC production cuts beyond 2018, Zangeneh told Shana:
“No decision will be made regarding this issue in the upcoming OPEC meeting because the matter is unlikely to be included in the meeting’s agenda.”
Commenting on oil prices, the Iranian oil minister said, “I think that the balanced, non-fluctuating price of oil would be favorable for OPEC and other producers.”
Zangeneh also commented on U.S. President Donald Trump’s Friday tweet about oil prices and OPEC’s role in fixing them.
President Trump tweeted that oil prices are “artificially very high” and “will not be accepted”, the day after the price of oil had reached its highest level since the end of 2014.
“By such remarks, Mr. Trump addresses a certain group of Americans who may be unhappy with rising oil prices, while he would approve of increased prices,” Shana quoted the Iranian oil minister as saying. Related: Saudi Arabia’s $100 Oil Dilemma
Earlier this month, when Brent was at $70 a barrel, Zangeneh told Reuters: “I think this level of prices is acceptable and I believe all are comfortable with this level of prices.”
Oil prices were down on earlier on Monday as the U.S. dollar was rising, traders were taking some profits from last week’s highs, and U.S. rig count showing no signs of stopping. At 3:05pm. EDT, WTI Crude was up 0.60 percent at $68.81 and Brent Crude was up 1.04 percent at $74.83.
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By Tsvetana Paraskova for Oilprice.com
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