Oil market faces oversupply: Oil min.

TEHRAN, Mar. 05 (MNA) – Iranian Oil Minister Bijan Namdar Zanganeh said that oil market is facing oversupply and termed balance between supply and demand in favor of both producer and consumer.

The Islamic Republic of Iran has always supported the policies that are in favor of two sides, he told reporters in Vienna on Wednesday prior to the on the sidelines of 178th OPEC Meeting which will be held on Mar. 5-6

Zanganeh pointed to the effect of coronavirus on the oil market and added, “outbreak of coronavirus in the world has reduced economic activities especially in the land and air transportation sector and consequently, demand for oil has declined considerably.”

Despite reduced demand for oil, production of oil has not decreased, he said, adding, “imbalance between supply and demand has led to a serious decline in oil prices in recent weeks.”

In 178th OPEC Meeting, it will be discussed that OPEC and Non-OPEC producers should have more reduction in oil production than the agreement made in December, Zanganeh added.

Most OPEC member states agree with reducing oil output, but the way of dividing oil reduction is the topic of discussion among member states, he said, adding, “OPEC and Non-OPEC producers have not yet agreed to reduce their oil production.”

He pointed to the oil market and added, “presently, the oil market is facing oversupply and this issue has caused some OPEC producers to be pressurized due to the reduced oil price.”

In response to a question that whether Iran supports OPEC policies, he said, “The Islamic Republic of Iran has always supported policies adopted by OPEC and believes that these policies should be in favor of both producer and consumer in equal condition.”

178th OEPC Meeting and OPEC and Non-OPEC Ministerial Meeting entitled “OPEC Plus” will be held in OPEC’s Headquarters in Austria’s capital Vienna on Mar. 5-6, 2020.

Iranian Oil Minister Zanganeh arrived in Vienna yesterday morning to take part in the meeting.

MNA/ 4870497

News Code 156362

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