High-flying oil prices could fall suddenly thanks to buoyant reserves filled by more than three million barrels per day of oversupply, Iranian Oil Minister Bijan Zanganeh said on Saturday.
Zanganeh, oil minister of Opec's second biggest producer, has attributed high prices to a shortage of refinery capacity in the United States and political tensions in the Middle East.
"I am concerned the oil price could fall suddenly," he told reporters at a Tehran petrochemicals conference, saying there were three to 3.5 million barrels of daily oversupply.
"Reserves are becoming full," he added.
Zanganeh reiterated his view that Opec's price band should not be changed, expressing his preference for prices at the higher end of the $22-$28 target.
Opec President Purnomo Yusgiantoro has said the cartel was considering raising this bracket, but gave no value for a new range.
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