ADVERTISEMENT

Crude May Rise To $55 A Barrel If All Producers Cooperate: Iran Oil Minister

Benchmark Brent crude rose by 37 cents to $46.86 per barrel on Friday.
Benchmark Brent crude rose by 37 cents to $46.86 per barrel on Friday.

Dubai: Iranian Oil Minister Bijan Zanganeh expressed optimism on Saturday about an upcoming meeting of the Organization of Petroleum Exporting Countries (OPEC) and said crude prices could jump to $55 a barrel if an agreement is reached and non-OPEC producers cooperate.

"We are receiving positive signals that increase the likelihood of agreement at the meeting... and I'm optimistic about the situation," Mr Zanganeh told state television by telephone, after meeting OPEC Secretary-General Mohammed Barkindo in Tehran ahead of the November 30 meeting.

"I think if we can reach an agreement, God willing, the price would rapidly reach above $50 per barrel... If non-OPEC (producers) also cooperate, I don't think $55 per barrel would be out of reach."

Benchmark Brent crude rose by 37 cents to $46.86 per barrel on Friday.

Asked about an OPEC proposal for an output cap of 3.92 million barrels per day for Iran, Mr Zanganeh said: "We have not reached any agreement. We have expressed our views and we look forward to explaining them."

OPEC is moving closer towards finalising its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes, ministers and sources said on Friday.

Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.

© Thomson Reuters 2016