Iran unveiled an affordable price for oil

May 8, 2015 12:25

Baku. 8 May. REPORT.AZ/ The world oil market acceptable price for oil is the level of 70-75 dollars per barrel. According to the Report, it was stated by Iranian Oil Minister, Bijan Zanganeh. At the same time, to keep the share of oil-producing countries of OPEC on the market price of oil should stabilize at the level of 45-55 dollars per barrel, "No one disagrees with the current fragile and volatile oil prices."

The head of the consulting department of the bank Credit Agricole, David Hall said that to maintain the share of oil-producing countries of OPEC on the market price of oil should reach 45-55 dollars per barrel, "So within 12 months, prices should be kept at a low level."

According B.Zanganeh, this year Iran could boost production to 4 million barrels per day, and climb into second place among the countries of OPEC. In April, Iran took the 5th place with an average daily volume of production at the level of 2.78 million barrels. According to the minister, the oil production in Iran after the introduction of sanctions fell by 60%. To date, investment demand in this sector is $ 200 billion dollars.

Note that until June 30, Iran intends to reach an agreement on its nuclear program with the countries of the "P5+1".

B.Zanganeh said Iran's OPEC plans to increase production. He noted that the main sales market - Asia, but they will be treated and European markets.

D.Holl noted that, at the next summit on June 5, OPEC, Saudi Arabia said the reluctance to reduce production. Therefore, with the increase in production of Iranian oil, the oil price in the long run will remain low.

Reuters and Citigroup have calculated acceptable oil prices of a number of oil-producing countries to ensure that they are not faced with a budget deficit:

Countries Minimal affordable price (USD/ barrel)

Yemen 214

Libya 184

Venezuela 161

Bahrain 132

Iran 130

Iraq 114

Algeria 113

Russia 105

Saudi Arabia 89

Oman 82

UAE 74