Middle-east Arab News Opinion | Asharq Al-awsat

Iran to Support OPEC Production Cut: Report | ASHARQ AL-AWSAT English Archive 2005 -2017
Select Page

TEHRAN (AFP) — Iran, number two oil producer in OPEC, would support a decision to cut production by the cartel at an extraordinary meeting set for Cairo later this month, the Mehr news agency reported on Friday.

“OPEC members have decided to hold a meeting on November 29 in Cairo to discuss recent prices. The current market situation is worrying,” it quoted Iran’s cartel’s representative Mohammad Ali Khatibi as saying.

“In light of dwindling oil prices and instability in the market, Iran will support an oil production cut,” he added.

The Organisation of Petroleum Exporting Countries (OPEC), which produces about 40 percent of the world’s crude oil, decided last month to cut output by 1.5 million barrels a day from November, after crude oil prices dived from record peaks above 147 dollars in July.

Oil prices closed mixed on Thursday from nearly two-year lows in New York after OPEC suggested it would hold an emergency meeting to consider another production cut amid a global economic slowdown.

The New York Mercantile Exchange, light sweet crude for December closed at 58.24 dollars a barrel, a gain of 2.08 dollars from Wednesday’s close.

The futures contract hit an intraday low of 54.67 dollars, the lowest level since January 2007.

OPEC has already scheduled an ordinary meeting for Oran, Algeria, on December 17 to review the 1.5 million barrels cut.

The cartel has made it clear it would consider another output reduction if oil continues to remain below 70 dollars a barrel.