Young Journalists Club | Latest news of Iran and world

News ID: 5082
Publish Date: 13:30 - 16 September 2014
Tehran, YJC. OPEC leaders are trying to pose calm as the current production race indicates that it will take long for the market to see oil sold at $100.

Oil price is still plunging in international markets, with the Brent Crude sold at $96 a barrel, the U.S. light at $91.27.

Oil has been experiencing as much as $17 reduction in price since two months ago, reaching a record two-digit this month.

Director of the International Affairs of Iran’s National Oil Company Mohsen Qamsari in interview with Mehr News Agency said that $115 is not a real price for the black gold. "The real price of oil is less than $100 a barrel.”

Stating that if the exchange market leaves oil, prices will go further down, he said "If there is only supply and demand in the market, the international price will still plunge.”

The Kuwaiti Oil Minister Ali al-Omair also stated that prices are not so low yet as to necessitate an emergency meeting with OPEC members.

Meanwhile OPEC Secretary General Abdullah al-Badri said that no emergency meeting has been considered. He expected that by the end of the year prices will have improved.

Why oil grew cheap

Despite problems afflicting oil producing countries to boost their production volume, the overall production by OPEC states has increased.

This week OPEC announced that the members produced 230,900 more this August to surpass 30.347 million.

U.S. on the other hand has not only halted its gas import, it is considering the export of oil and gas condensates, having so far exported 3 loads of its ultra-light oil to South Korea and Japan.

The country increased its crude production by one million to hit 9 million and 530 thousand barrels this year.

Source: mehr news

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Under Review: 3
Joe KomaGawa
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Japan
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17:08 - 1393/07/01
US oil production is a troublesome thing. However the free market philosophy is in control, not nationalism I think the two coincide and may conflict, however the free market is stronger more flexible. So, we cannot yet see what the push by US oil companies are going to effect energy supply. I think they see their assets as a "short term" resource. So they will push as hard and as fast as they can to get as much profit. My great sympathies are with the common Iranian people and the cost of goods. But we are basically unorganized individuals. The situation makes us like victim/consumers. No one can see how this will turn out.
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