Opec will cut oil output further, if needed, to achieve stability in the oil market, state television on Saturday quoted Iran's oil minister as saying. Oil Minister Gholamhossein Nozari also said Iran would cut output by 199,000 barrels per day (bpd) in line with a decision by the Organisation of the Petroleum Exporting Countries to reduce Opec production by 1.5 million bpd from November 1, TV said.
Oil prices have tumbled from a July record of $147 a barrel to less than half that figure. US crude closed around $67 a barrel on Friday. Economists say Iran needs around $70 to $75 a barrel, or more, for its crude in order to balance its books. "The drop in Opec's output will continue until it (Opec) attains stability in the oil market," state television quoted Oil Minister Gholamhossein Nozari as saying.
"Based on the new assigned quota, Iran's crude oil production quota will drop by 199,000 bpd," Nozari said according to the television report, although he did not say to what level Iran's output would fall. Iran has been producing a little more than 4 million bpd although officials have declined to announce the targets set for before and after Opec's latest production cut deal, which was agreed at an Opec ministers meeting in Vienna on October 24.
"In the event that falling trend in prices continues, Opec will have another emergency meeting," Nozari was quoted as saying in the newspaper Abrar-e Eqtesadi. Iran's Opec governor, Mohammad Ali Khatibi, said last week that Opec would cut more production if warranted, comments which have been echoed by some others in Opec.
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