OPEC not to further cut oil output: Iranian minister

March 1st, 2009 - 8:49 pm ICT by IANS  

Tehran, March 1, (IANS) Iran’s Oil Minister Gholam-Hossein Nozari said Sunday the member countries of the Organisation of Petroleum Producing Countries (OPEC) are not expected to announce further cut in their crude production during their upcoming meeting, the official IRNA news agency reported.
“I do not think that we would move towards cutting production again and we should define a mechanism to repair prices,” Nozari said.

The minister, however, said during the group’s meeting to be held in Vienna March 15 the member countries would take measures to improve market prices.

“The OPEC states have fulfilled 80 percent of their commitments regarding reduction in their crude output,” the minister said, underlining that if such reductions were not made, the prices would have further decreased.

“Due to the global economic crisis and decrease in oil demand, the OPEC decision to cut down production prevented sharp fall in oil prices,” Nozari added.

Iran, the second largest producer in the 12-member cartel, earlier demanded more production cuts to prevent the prices plunging further.

With demand for oil tumbling in the wake of the severe global economic slowdown, Oil prices have fallen by more than $100 a barrel (or 159 litres) since a peak of $147 in July last year.

In September last year, OPEC promised to cut output by 4.2 million barrels a day to shore up prices.

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