Tehran observes falling oil prices

/By AzerNews/

By Sara Rajabova

Iran’s oil minister said his country is pursuing the issue of falling oil prices that reached its lowest rate over the recent years.

Bijan Namdar Zangeneh said on January 7 that the issue of global oil prices is not that simple, but Iran and other OPEC members are following up the issue of plummeting price, Press TV reported.

He described plunging oil prices as complicated, saying the issue is affected by both economic factors and political intentions.

The price of Brent crude oil fell below $ 50 a barrel on January 7 for the first time since May 2009. Meanwhile, the West Texas Intermediate crude has already fallen below $ 50.

Zangeneh added that a rise in the production of petroleum products could not help lower crude prices.

“Global oil supply and demand as well as products are all significant. More products will bring us further added value, but given the present circumstances, oil prices will not change. Nevertheless, the cost of petroleum products has fallen, too,” Zangeneh added.

Iran, like many of the oil-exporting countries is still suffering from the sharp drop of global oil prices, as it has declined about 50 percent since June last year.

Earlier, Tehran blamed the political factors behind the fluctuation in the oil prices, saying it is unpredictable.

Observers say that oil price could see further declines in the coming weeks as OPEC seems unlikely to do anything about over-output.

Oil prices started to fall over increased supplies by certain countries such as Saudi Arabia, the largest producer in the Organization of the Petroleum Exporting Countries (OPEC), and a lackluster global economic growth.

OPEC, which pumps out about 40 percent of the world’s oil, has so far refrained from cutting its production to balance the market due to opposition from Saudi Arabia.

Iran has criticized Saudi Arabia, the world's biggest crude exporter, for its lack of cooperation in preventing the fall in oil prices. However, Riyadh has said OPEC will not cut oil production even if oil prices fall to $ 20 a barrel.