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Page added on January 19, 2015
Iran says oil industry could withstand $25 crude
Iran sees no sign of a shift within OPEC toward action to support oil prices, its oil minister said, adding its oil industry could ride out a further price slump to $25 a barrel.
The comments are a further sign that despite lobbying by Iran and Venezuela, there is little chance of collective action by the 12-member OPEC to prop up prices – entrenching the reluctance of individual members to curb their own supplies.
In remarks posted on the Iranian oil ministry’s website SHANA, Oil Minister Bijan Zanganeh called for increased cooperation between members of the Organization of the Petroleum Exporting Countries.
“Iran has no plan (to hold an emergency OPEC meeting) and is currently in consultations with other OPEC member states in a bid to prevent the sharp fall in the oil price, but these consultations have yet to bear fruit,” he said.
Oil has plunged by more than half since June 2014 to below $50 a barrel on Monday, pressured by a global glut and OPEC’s refusal at its last meeting in November to cut its output.
OPEC decided against a production cut despite misgivings from non-Gulf members such as Iran and Venezuela, after top producer Saudi Arabia argued the group needed to defend market share against U.S. shale oil and other competing sources.
Since the meeting, lobbying by Iran for a cut and a diplomatic tour by Venezuelan President Nicolas Maduro has failed to soften the stance of the Gulf members, who can live with relatively low oil prices.
Reinforcing the impasse, the Gulf members are frustrated with the position of other countries, who call for supply cuts but do not offer any themselves.
Zanganeh said Iran had no plans to cut its own oil production and that it had no further meetings with Saudi Arabia – Iran’s main political rival in the Gulf – since the OPEC meeting.
Last week, Iranian President Hassan Rouhani said countries behind the price fall would regret their decision and warned that Saudi Arabia and Kuwait would suffer alongside Iran from the price drop.
Zanganeh said Iran’s budget should be based on oil at $72 per barrel, but Iran could withstand lower oil prices.
“Even if the oil price goes down to $25 a barrel, the oil industry will not be threatened,” the Fars news agency quoted him as saying.
11 Comments on "Iran says oil industry could withstand $25 crude"
Speculawyer on Mon, 19th Jan 2015 6:04 pm
It is standard procedure to exaggerate the strength of your bargaining position when in negotiations.
But it doesn’t work if people don’t believe you.
Makati1 on Mon, 19th Jan 2015 6:55 pm
And the Western ‘news’ source is reliable? LMAO!
redpill on Mon, 19th Jan 2015 7:27 pm
Ok Mak, could you please point out what part of this article appears to be opinion or that you find to be less than factual? It sure looks like they are stating these are direct quotes from the Iranian oil minister.
Or were you making a comment to Speculawyer, whose comment appears spot on when one considers how much blather was coming out of Iran in weeks past about conspiracy this and conspiracy that. And now they’re saying they’re fine with another 50% price drop. Just doesn’t ring credible, like you…
Davy on Mon, 19th Jan 2015 9:41 pm
Red, I appreciate the help with the board propaganda bitch.
Makati1 on Tue, 20th Jan 2015 8:41 am
Red, first, it is from Reuters, the pimp of Wall Street. It is owned by your masters who tell you only what they want you to believe, as does ALL of the MSM Iron Curtain ‘news’ outlets.
Second, if you believe it, your indoctrination is complete. Welcome to the Stupid Sheeple Club of America.
Since you are already biased against anyone outside the USSA, you don’t want to believe that the US is failing in it’s attempts to take over the world and is barely staying alive. Nothing I can type here is going to change your mind. Only the coming USSA crash and it’s Nazi Police State around you, will be the 2X4 in the face that wakes you up … if you survive.
Davy on Tue, 20th Jan 2015 9:09 am
Mak, it is amazing how anything that does not agree with your warped world view agenda is labeled “MSM Iron Curtain ‘news’ outlets. Yet, if it agrees with your world view you will post a comment with the link. I have seen you do this with Zero Hedge. You really must be deceived if you believe your pimps are any different in their agenda. What you are incapable of looking at is all the sources then sift through the shit and get to the facts both sides generally have. Either side of the issues have to have solid facts to support claims or they are not worthy of being called news. The issue is selective use of facts and statistics that are claimed to be the truth. So often selective use of the facts are nothing more than deception in themselves or a mask for an outright lie. It amazes me you can’t understand this because that is precisely what you do. I am fully aware that western MSM is bought off by corporations in an unholy alliance with TPTB. Yet, please don’t blow smoke up my ass that your pimps are any better. Your pimp’s just aren’t as competent at it with organization and money.
redpill on Tue, 20th Jan 2015 12:50 pm
My pleasure Davy! It’s hard to picture he’s a real person. I’ve thought more than once that he’s a construct of peakoil.com to stir things up but who knows, there are a lot of whack jobs out there.
So Mak, you commented not to make any point regarding the actual article but just to let us know that Reuters is “the pimp of Wall Street”? Way to add value buddy!
Oh, and it looks like you might need to sit down in a comfy chair with your favorite sippy-cup for awhile, that last post of yours was a tad unhinged.
Speculawyer on Tue, 20th Jan 2015 3:32 pm
TPTB and Illuminata are getting together and using the Zionist controlled media to pull the wool of the eyes of the sheeple and . . . ugh.
I miss TheOilDrum. 🙁 More facts, less paranoid conspiracy stuff.
Davy on Tue, 20th Jan 2015 4:07 pm
Spec, what you are saying is the bad news is getting to you. Face it like a man or get some meds or put your head in the sand like the sheeples. Nothing wrong with going back to civilian life of being a sheeple. Ignorance is bliss until you are starving. Otherwise start showing some corn porn that represents reality so us corn-porn non believes can be converted back to the home team.
I have said this numerous times cornucopians should not visit this site unless they are open to conversion. It is not the type of site to maintain cornucopian optimism. Optimism is a very fragile state of mind. Reality is cold and harsh. Doomers have climbed the latter through different mental stages to achieved acceptance. Acceptance of the end of what we have now and have always known. We no longer live in denial or hopium. I don’t know if I can remain here in this doom nirvana. I say nirvana because life falls into place when you acknowledge reality. I pray I am delusional but as far as I can tell I am seeing things clearly.
GregT on Tue, 20th Jan 2015 6:48 pm
“TPTB and Illuminata are getting together and using the Zionist controlled media to pull the wool of the eyes of the sheeple and . . . ugh.”
Spend a few hours of research into who controls your media Spec, and get back to us. While you are at it, study the history of fiat currencies. If you still truly believe this to be a conspiracy theory, you are indeed one of the sheep.
Makati1 on Tue, 20th Jan 2015 6:59 pm
Psychiatrists would have a field day with the bunch on here…lol. Me included, but then, everyone else is insane, right?