An Iranian Oil Ministry official says Iran will ask OPEC to call an emergency meeting to discuss oil prices if they slump below USD 100 a barrel.
“To that effect, Iran’s oil minister [Rostam Qasemi] will have telephone conservation with OPEC president about an extraordinary meeting,” the official, who was not named, said Monday.
On Sunday, Qasemi said Iran wanted oil prices to stay above USD 100 per barrel, noting that “an oil price below USD 100 is not reasonable for anyone.”
Crude dropped to near USD 101 on Friday and ahead of the next meeting of the Organization of the Petroleum Exporting Countries on May 31.
Also on Monday, Iran’s former Oil Minister Gholam Hossein Nowzari said USD 100 price would be a “fair price for both producers and consumers” although it is not realistic for crude oil.
“The oil price is always decided based on supply and demand,” said Nowzari, whom Iran has nominated for the post of OPEC secretary-general.
He noted that austerity measures enforced in some European countries have resulted in lower demand for crude oil in the global markets.
Nowzari stated that OPEC could play an effective role in this regard, noting that the organization has always adopted reasonable decisions in times of crisis.
London's Brent North Sea crude fell to USD 101.18 per barrel, the lowest since July 13, 2012.
Forecast downgrades for 2013 from OPEC, the International Energy Agency (IEA) and the Energy Information Administration (EIA) have rocked markets.