Iran – Current Crude Prices Still Low

Current crude prices are still low and may increase further, according to Rostam Qasemi, the oil minister of Iran. The oil minister made that statement on the same day that Saudi Arabia said that the oil price per barrel is very high and that the kingdom would do something to control them.

On the news website of the oil ministry of Iran, Qasemi was quoted to have said that the current oil price is still low and has the possibility of moving up further.

On the same day, Ali al-Naimi, the oil minister of Saudi Arabia, also said that they are concerned about the high oil price per barrel and will do their best to limit it.

However, Iran, with their need for high crude prices to counteract the country’s lower sales volume due to the Western sanctions, thinks that prices can further increase in the coming months.

Lower oil production from Europe’s North Sea oil fields may push prices up, said Qasemi.

When asked about Iran’s thoughts on the possibility that the U.S. will release its strategic oil reserves as a way to stop prices from surging, Qasemi said that the per barrel crude price typically rises as the winter approaches in the northern hemisphere.

Officials of the U.S. administration convened with energy analysts during the end of the past week in a meeting that some took as a signal that the current administration is thinking of tapping government oil supplies to bring per barrel crude prices lower.

The crude price per barrel of Brent has sharply risen by almost 20 percent since the June meeting of the OPEC. Prices have stayed within the $112 to $117 range since the middle parts of August.

In spite of increased OPEC production to a level that is close to record highs, persistent conflict over the nuclear program of Iran and the North Sea’s field outages have offset any downward pull on the costs of fuel caused by worries about the slow growth of the global economy.