Iran, OPEC confer ahead of Algerian summit

Both sides met in Tehran to discuss market conditions and crude oil prices.

By Daniel J. Graeber
Iranian Oil Minister Bijan Zanganeh hosts OPEC leader as major players consider action to prop up the price for crude oil. Photo by Maryam Rahmanian/UPI
| License Photo

Iran's oil minister said Tuesday he met in Tehran with the secretary general of OPEC as major oil producers mull the prospects for market intervention.
Oil Minister Bijan Zanganeh met with Mohammed Barkindo, the secretary general of the Organization of Petroleum Exporting Countries, ahead of an informal meeting in Algeria to discuss "global oil market conditions and crude prices," the oil ministry's news website SHANA reported.
Ministers in Algeria are expected to mull the prospects for artificial action aimed at propping up the price for crude oil, which at one point this year dropped below $30 per barrel. A joint statement issued Monday from Russia and Saudi Arabia unveiled the formation of a bilateral panel to monitor the markets while recognizing the market situation was in large part characterized by an excess in supplies.
According to SHANA, Iranian oil officials have said they support a decision that could narrow the gap between supply and demand, but would only cooperate once it regains the market share lost to Western-backed economic sanctions.
Zangeneh noted widespread support for some sort of action earlier this year after Russia and other producers proposed holding output steady. In late August, he confirmed that he would attend the Algerian meeting, but kept his defense of market share.
Iranian oil exports have increased substantially since December, the month before sanctions were eased after confirmation the country was meeting its international nuclear research assurance obligations. Even with new contracts on the horizon, the Islamic republic has faced stiff competition from rival producers defending their own consumer base.
For OPEC's part, Barkindo said during a visit to Qatar earlier this week there are frameworks in place that "can be further developed to restore oil market stability."
Previous efforts to stimulate the price for oil collapsed earlier this year as OPEC members expressed reservations about giving up their positions. Moscow this week said a price for oil in the $50-$60 range seemed fair, while Riyadh said there was currently no proposal to put a governor on crude oil production.
Iran, OPEC confer ahead of Algerian summit Reviewed by Bizpodia on 18:07 Rating: 5

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