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Iran Sees Oil Oversupply, Frets Over Price Fall | ASHARQ AL-AWSAT English Archive 2005 -2017
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TEHRAN (Reuters) – Iran’s oil minister said on Tuesday OPEC must discuss crude oversupply when it meets and again indicated the No. 2 OPEC producer wanted the cartel to defend oil from hitting $100 a barrel, IRNA news agency said.

Gholamhossein Nozari said on Sunday that $100 a barrel was the lowest appropriate price. Crude has tumbled from a record $147 in July and on Tuesday was trading below $109.

“The supply of oil must be in proportion to demand and the control of oversupply by OPEC is an issue that will have to be discussed in the next meeting,” Oil Minister Gholamhossein Nozari said.

IRNA said his comment in reference “to the fact that some believe that under conditions in which the price of oil is $100 a barrel, OPEC must not take any special measure.”

Iran is traditionally hawkish on price. Another price hawk, Venezuela, said record prices near $150 a barrel were “irrational” and that they would probably settle around $100.

“Some member states of OPEC are overproducing and producing in excess of the quota assigned to them. Therefore in OPEC’s upcoming meeting, these members will be asked to stop their excess production,” Nozari said.

OPEC ministers meet in Vienna on September 9.

“I think that at least for the next 30 years, the crude oil market will preserve its market and will find its appropriate price. Demand for (oil) is on the rise,” he said.