TEHRAN – Iran will propose slashing OPECs output for the second quarter of 2006 during the next meeting of the organizations oil ministers, though the proposal may not be upheld by majority of members or may be adjourned until next session.

A senior energy and OPEC affairs expert at the Iranian Ministry of Petroleum told Petroenergy Information Network that the extraordinary meeting of the Organization of Petroleum Exporting Countries, which is slated for January 31, is supposed to reach a decision on cutting production during the third quarter of the current year and Iran will offer its proposal. Mohammad Reza Farhangi noted that in view of critical oil market conditions and despite the fact that such countries as Venezuela, Nigeria and Indonesia may welcome a decision on production cut, Irans proposal will be possibly turned down by the majority of OPEC member states. He said experience shows that under such critical conditions when Nigerias oil export has been disrupted due to strikes and Irans nuclear standoff with the west is going on; most producing countries will oppose an output cut. Asked what would be the calming effect of International Energy Agencys recent announcement to release its stores, on the international market, the expert stated that both producers and consumer countries always use their tools to create psychological effects in the market and position taken by IEA aims to affect international market psychologically. Farhangi stated that such tools will not be very effective under current market conditions, but when consumption falls during the second quarter, they will put downward pressure on oil price. He said in case of imposing new sanctions on Irans oil exports, it would be very hard to find a substitute for Iranian crude.
کد خبر 77706