Iran Warns OPEC on Special Meeting

The Iranian minister for Oil warned on Friday that any kind of emergency meeting conducted by OPEC (Organization of Petroleum Exporting Countries) would send the wrong signal and damage the market of Crude Oil should no decision be made to prop up the rapidly declining oil prices.

Oil prices have hit their lowest since 2003, with concerns lingering over the economic health and subsequent future demand for oil of China – the world’s second largest economy and the world’s second largest consumer of Oil.

Venezuela, which contributes around 4% of global daily oil production, has been calling for OPEC to hold a special emergency meeting to discuss ways to shore up declining prices. However, Iran and other Gulf State members of OPEC have been dismissing Venezuela’s demands.

Iran’s minister for Oil; BijanZanganeh, was quoted as saying by the news agency SHANA “There should be an intention to make a firm decision in such a meeting; otherwise, the meeting will have a negative impacts on world oil markets,”

“The important thing is that there must be an intention for change, but we have not yet received such a signal,” he is reported to have said.

OPEC’s next scheduled meeting is not until June. After the previous special emergency meeting to discuss a large decline in prices back in 2008, prices more than doubled within a year after OPEC agreed a large-scale cut in global production.

Since the sanctions on Iran were lifted last week, it is expected that Iran will add nearly 500k of barrels daily, with OPEC already pumping Oil at record levels.

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Daniel Simmons