OPEC serious about changes in price band

According to Iran’s Official News Agency (IRNA) Minister of Oil, Bijan Namdar-Zanganeh said that the discussions carried out on changes in the OPEC price Band have been serious.

Speaking on the sidelines of the opening ceremonies of the9 th oil, gas and petrochemical exhibition Zanganeh told reporters that the OPEC`s Board of Directors will present its findings to member countries at a session to be held in september in Vienna.

iranmania.com
According to Iran’s Official News Agency (IRNA) Minister of Oil, Bijan Namdar-Zanganeh said that the discussions carried out on changes in the OPEC price Band have been serious.

Speaking on the sidelines of the opening ceremonies of the9 th oil, gas and petrochemical exhibition Zanganeh told reporters that the OPEC`s Board of Directors will present its findings to member countries at a session to be held in september in Vienna.

The current market condition is “satisfactory” and “moderate” and is moving in tandem with the two sides` desired view on oil prices Zanganeh said adding “it is not Iran`s intentions to be a thorn in the side of consumers.”

On instability in Iraq, he added the market has factored in the instability “such that recent explosions of pipelines have not had a determining factor on the market prices. “Although, there are constant explosions in Iraq, but this has almost become a norm and the markets have adopted to the pattern.”

On another issue on the manner of payment to the Italian company regarding the phases4 th and5 th of the south pars gas field, he added that it has been determined that33 % of the surplus value of the contract in these phases up to $ 115million will be paid out to these companies.

“The surplus production of the Italian oil concern ENI is estimated to fetch $ 350million of added value for Iran.” Zanganeh said here in June that the world`s major crude oil consumers are satisfied with $ 30to $ 34 price range for each barrel of crude oil.

He told reporters 2004 has been an exceptional year due to economic growth in such countries as the US, China, Russia, India and Japan, which prompted increase in energy consumption and demand. Despite the increase in demand, oil supply by OPEC and non-OPEC members has been higher, said Zanganeh.

He said high crude prices in the markets has been due to political tension in the Middle East, including Iraq, the US` technical problems for production of gasoline and certain other problems concerning oil trade.

He added despite supply outstripping the demand, OPEC decided to raise output on July1 , 2004 to stabilize the market and address the demands of customers.

Zanganeh said the market is worried about safe supply as well as political developments and terrorist incidents in the Middle East.

OPEC has no problem in meeting crude oil demand in the fourth quarter of 2004 because supply exceeds demand by three million barrels. He also said OPEC is capable of producing more than 29 million barrels of crude oil a day.