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Official: Iran favors oil price between $75 and $80

Iran’s Oil Minister Gholam Hossein Nozari told a press conference Sunday that the oil price between 75 and 80 U.S. dollars would be favorable for Iran, the local ISNA news agency reported.

“The favorable price of oil to develop (Iran’s oil) fields is between 75 and 80 U.S. dollars,” Nozari was quoted as saying.

Referring to the noneffective of the unilateral cut of oil output by the Organization of the Petroleum Exporting Countries (OPEC), Nozari said that “some non-OPEC countries compensate the amount cut (by OPEC)… unless the non-OPEC members do cooperate, the unilateral cut of the oil production by OPEC members will lack its effect.”

“Therefore, in the OPEC meeting in May, we need to study the global condition and the demand for the crude oil to decide on the limits of (OPEC’s) production,” he added.

The oil prices hit a peak of 147 dollars in July last year but have fluctuated this year between 40 and 50 dollars. Iran is OPEC’s second largest oil producer.

The OPEC conference in March emphasized its commitment to comply fully with its decision in December 2008 to cut production by a record 2.2 million barrels per day (bpd), taking total curbs since last September to 4.2 million bpd.

OPEC, the 12-member oil cartel which pumps nearly 40 percent of global supply, is due to hold another conference in Vienna on May 28, to consider any further actions deemed necessary to bolster sagging oil prices under the global economic slowdown.



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