DavidS
Anti-Tea Party Member
UPDATE 1-OPEC may be pushed to oil cut of 2-2.5 mln bpd-Iran - Forbes.com
TEHRAN, Oct 21 (Reuters) - Iran's oil minister said on Tuesday a drop in demand could push OPEC to cut output by 2-2.5 million barrels per day and said falling prices would hurt consumers in the long term by damaging investment in capacity.
The Organization of the Petroleum Exporting Countries meets on Friday in Vienna, amid mounting pressure within the cartel for a production cut. The meeting was brought forward from November as prices tumbled.
Oil prices have fallen to half their July peak of $147 a barrel. They were last trading on Tuesday above $74 a barrel.
Iranian Oil Minister Gholamhossein Nozari told reporters on the sidelines of a gas meeting in Tehran the drop in demand for oil 'can push OPEC to cut the current production by 2-2.5 million barrels per day'.
'The era of cheap oil is finished,' Nozari said and when asked what oil price Iran wanted replied: 'The more the better.'
Qatari Energy Minister Abdullah al-Attiyah said at the same meeting OPEC did not fix any price for oil but that he personally believed $80-$90 a barrel was the best price for the consumer, while $100 a barrel was 'not good'.
But Nozari said: 'I believe that with $80-$90 (a barrel) ... some countries can be harmed with this price.'
Some analysts say Iran, OPEC's second-biggest producer after Saudi Arabia, needs nearly $100 a barrel to balance its books. Others cite a figure of around $70-$75 a barrel, but even the lower figure is roughly where oil prices are now or below them.
Nozari, echoing his previous comments, said investment costs for new oil projects were rising and, as a result, falling crude prices might damage such investment, which would hurt consumers in the long term.
Iran's OPEC governor, Mohammad Ali Khatibi, said there were differing views in OPEC about what level of cut was needed, referring to a range of 1-3 million bpd. Khatibi previously said OPEC could make any cut in stages when it meets.
TEHRAN, Oct 21 (Reuters) - Iran's oil minister said on Tuesday a drop in demand could push OPEC to cut output by 2-2.5 million barrels per day and said falling prices would hurt consumers in the long term by damaging investment in capacity.
The Organization of the Petroleum Exporting Countries meets on Friday in Vienna, amid mounting pressure within the cartel for a production cut. The meeting was brought forward from November as prices tumbled.
Oil prices have fallen to half their July peak of $147 a barrel. They were last trading on Tuesday above $74 a barrel.
Iranian Oil Minister Gholamhossein Nozari told reporters on the sidelines of a gas meeting in Tehran the drop in demand for oil 'can push OPEC to cut the current production by 2-2.5 million barrels per day'.
'The era of cheap oil is finished,' Nozari said and when asked what oil price Iran wanted replied: 'The more the better.'
Qatari Energy Minister Abdullah al-Attiyah said at the same meeting OPEC did not fix any price for oil but that he personally believed $80-$90 a barrel was the best price for the consumer, while $100 a barrel was 'not good'.
But Nozari said: 'I believe that with $80-$90 (a barrel) ... some countries can be harmed with this price.'
Some analysts say Iran, OPEC's second-biggest producer after Saudi Arabia, needs nearly $100 a barrel to balance its books. Others cite a figure of around $70-$75 a barrel, but even the lower figure is roughly where oil prices are now or below them.
Nozari, echoing his previous comments, said investment costs for new oil projects were rising and, as a result, falling crude prices might damage such investment, which would hurt consumers in the long term.
Iran's OPEC governor, Mohammad Ali Khatibi, said there were differing views in OPEC about what level of cut was needed, referring to a range of 1-3 million bpd. Khatibi previously said OPEC could make any cut in stages when it meets.
