Iran wants more oil cuts

13 January 2009

After OPEC agreed to cut output by a record 2.2 million barrels a day in December last year, Iranian representative to OPEC Mohammad-Ali Khatibi was quoted as saying that OPEC will aim to reduce oil output further when it meets in March if crude prices fall further.

Khatibi said that Iran wants the OPEC emergency meeting in February. "If we could have a meeting in February, we could evaluate OPEC's January performance."

From a dizzy height of $147 a barrel last July, oil prices have crashed more than $100 as the global economic downturn has dampened the demand for fuel with prices hovering around $37 a barrel yesterday.

Mohammad Ali Khatibi, Iran's OPEC governor told the oil ministry website SHANA that "If oil prices continue to fall, cutting production at the March 2009 meeting would not be unlikely. A fourth OPEC production cut in the meeting would not be beyond expectation."

The 12-member OPEC oil producing nations, which supplies nearly 40 per cent of global oil need, had agreed in December to hold a meeting in mid-March in the Austrian capital of Vienna to review oil prices and Iran is pushing for holding an emergency meeting in February, a month ahead of its scheduled meet in March.

Khatibi further added that "The impact of the recent production cut in the market should be evaluated and in case of being ineffective in preventing crude price falls, OPEC's efforts will continue until the crude market reaches a stable condition."