TEHRAN, (Reuters) – Iran, OPEC’s second-biggest producer, said a “solution” to lift oil prices would be proposed at a meeting of the group later this month, the official IRNA news agency reported on Tuesday.
Oil Minister Gholamhossein Nozari said on Sunday he did not expect a further output cut decision this month after Iran had previously suggested OPEC could impose further curbs, but he did call for a mechanism to repair prices.
Crude prices have plunged by more than $100 a barrel since a peak of $147 last July as demand has tumbled. To shore up prices, OPEC pledged to cut output by a total of 4.2 million barrels per day (bpd) since September.
“OPEC members on March 15, 2009 in Vienna will review the situation of the market and will present a new solution to improve oil prices,” Nozari said.
IRNA said he gave no further details about the “solution” and in a later report said Iran would make the proposal.
A senior Iranian oil official, contacted by Reuters, said he could not comment on the minister’s remarks.
“If OPEC members remain fully committed to OPEC cut decisions, it will have an impact on the oil market,” Nozari said.
Nozari said on Monday that OPEC last month had 80 percent compliance with its output curbs and that action on the remaining 20 percent would help market stability.
A Reuters survey on Monday estimated OPEC compliance at 81 percent and supply from the group in February remained 780,000 barrels per day higher than the implied target of 24.84 million bpd.