21 October 2014 - 10:26
  • News ID: 227205
Calling OPEC Emergency Meeting Not Reasonable

TEHRAN Oct 21 (Shana)--A senior energy expert has said that Iran should not make any hasty decision in order to persuade OPEC to hold an emergency meeting.

Narsi Ghorban told Shana in an interview that before calling for holding an emergency meeting, OPEC members are expected to discuss the issue in private meetings and publicize their call for holding an emergency meeting after reaching a consensus.

He said calling for an emergency meeting before reaching consensus with other members of the organization is against diplomatic procedures because it won’t be good if one member asks for holding an extraordinary meeting and other members turn it down.

 “Holding emergency sessions in order to make a decision on cutting production is subject to a special procedure” Ghorban said.

On the impact of falling oil prices on the budget, he noted that when we talk about budget revenue we should take into account the average oil prices for the whole year, implying if oil prices were above 100 dollars over the first seven months of the year and then dropped to below 100 dollars in the next five months to hit 80 dollars, for instance, the average will be 94 dollars which will lead to budget deficit just by one billion dollars which is not too much worrying.

He noted that releasing a small portion of frozen assets of the country will make up for the lost one billion dollars.

Ghorban said economic and political factors each could play a role in oil market fluctuations adding world economy is experiencing downward growth, the U.S and china’s economic growth have witnessed slow down and oil market faces oversupply.  

On Iran’s bargaining power in OPEC, Ghorban said: "Sanctions could reduce Iran’s oil exports to around one million barrels per day and accordingly it reduced Iran’s power in OPEC because bargaining power in OPEC depends on oil production capacity and exports of each member".

 “In the past some believed that sanctions were unworthy and torn papers, so they did not do anything to stop sending Iran’s nuclear dossier to the U.N. These moves halved Iran’s oil exports and reduced it to just one-ninth of Saudi Arabia’s oil export capacity”, energy senior expert said.

Elsewhere in his statements to Shana, Ghorban said he disagree with what has been named price war between Saudi Arabia and Iran and does not consider it as a right interpretation of what is really happening in the market.

According to the expert, it should not be ignored that Saudi Arabia raised its production to make up for interruption of oil exports from Libya and others and now the country does not like to lose the market it has already secured.
News ID 227205

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