News ID: 2903447 -

3 causes of drop in world oil prices: Zanganeh

TEHRAN, Sep. 05 (MNA) – Iran’s oil minister reported on the 30-billion-dollar investment in the South Pars and proposed three caused for the global decline in oil prices.

Discussing the most important reasons for the falling of world oil prices, Bijan Namdar Zanganeh said in a live TV program that, “Iran and many OPEC countries believe that $70 or $80 per barrel is a reasonable price and we are planning for an increase in oil price to $70 to $80 a barrel.”

Noting that all decisions of OPEC are made by consensus and even after approval, their implementation is voluntary and not mandatory, Oil Minister added that, “oil is currently being traded at around $50 per barrel and the most important reason for the decline in oil process is that supply has surpassed demand.”

Stating that in the past year some OPEC countries have tried to keep oil prices at a low level, this member of the government said that, “so far this policy has failed and in order to decide on oil prices all OPEC and non-OPEC countries should cooperate.”

Zanganeh further enumerated three main causes of the decline in oil prices as strengthening of US dollar against euro, economic surplus, and economic crisis adding that, “having a multi-trillion-dollar economy, China exerts a significant effect on the world market.”

Emphasizing that the slightest fluctuation in China’s economy hits all markets including the oil market, this official asserted that, “over the past few years, Iran has stood against events like sanctions and falling oil prices; therefore, we are familiar with the country’s economic conditions at the time of low oil prices.”

Zanganeh continued by saying that after the removal of sanctions, Iran’s oil export will double concluding that, “by increasing oil production and export, we will not experience economic loss even if oil prices drop.”