Iran has been lobbying against increasing oil supply from OPEC countries (Photo: Reuters)
Oil ministers in the Organization of Petroleum Exporting Countries (OPEC) will need to meet if prices continue to fall, Iran's permanent representative with the producers' group said Friday.
Muhammad Ali Khatibi, whose country currently holds the OPEC presidency, said it was too early to say that an emergency meeting should be carried out as price fluctuations are characteristic of the oil market.
Global economic slowdown as well as declines in demand for oil has pulled global prices downwards. Oil prices Thursday dropped by over 5% on the back of a broader market selloff driven by economic concerns in Europe and the U.S.
Khatibi remarks came after reports that an explosion hitting Iranian pipelines on Friday has caused a hike in oil prices.
Iran, a hardliner inside OPEC with regards to prices, has succeeded to abort Saudi Arabia’s efforts to increase target production levels on 8 June, which drove the Kingdom to unilaterally increase production.
Khatibi added that “past experience shows that economic problems have an effect on global demand on oil, and we have to watch whether this crisis is going to last in the coming weeks to be able to reach conclusive results,”
Brent rose by 56 cents to reach US$107.81 per barrel at 1005 GMT after it had plummeted earlier to US$104.3 per barrel, its lowest level since 27 June on back of fears of demand declines.