Business | Oil & Gas
Oil prices below $100 'unsuitable' says Iran oil minister
Oil prices below $100 a barrel were unsuitable for both producers and consumers, Iran's oil minister said on Saturday.
- AP
- Published: 11:50 October 4, 2008
Tehran: Oil prices below $100 a barrel were unsuitable for both producers and consumers, Iran's oil minister said on Saturday.
"$100 and below is not suitable for oil producers or oil consumers," Iran's Oil Minister Gholamhossein Nozari told reporters at an energy conference.
High fuel prices and the wider economic crisis have hurt consumption in top consumer the United States and other major consumers. US crude traded around $93 a barrel on Friday, down over $50 from a record over $147 in July.
The world's fourth-largest exporter is among the members of the Organisation of the Petroleum Exporting Countries (OPEC) that needs high oil prices to balance its budget.
OPEC, source of more than a third of the world's oil, agreed in September to trim output to prop up prices. The producer group called for strict compliance among members with output targets, a move officials said would result in a reduction in OPEC oil supplies of around 500,000 barrels per day.
Iran's oil minister has previously said $100 was the lowest appropriate price for a barrel of crude.
Anything below that level would slow investment in high-cost projects to boost oil output, which would hurt consumers in the long run, Iran's OPEC Governor Muhammad Ali Khatibi has said.
Recent oil market volatility was due to the world's economic problems, Nozari said on Saturday.
"I think the main reason for the volatility is because of international economic crisis," Nozari said.
More from Oil & Gas
More from Business
Business Editor's choice
-
Saudi-Bahraini economic ties hit new high
Whilst press reports continue speculating on a possible new political structure defining ties between Saudi Arabia and Bahrain, facts on the ground confirm ever- stronger economic ties between the two neighbours
-
Cupid targets the Fed with early tweets
Declarations range from pure romance to cute overtures and racier fare
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
