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Money News

Iran says still no balance in oil market - report

A petrol station in front of the OPEC headquarters is pictured in Vienna in this October 24, 2008 file photo. REUTERS/Herwig Prammer/Files

TEHRAN (Reuters) - Iran’s OPEC governor said the oil market was still not in balance and the producer organisation’s work was “incomplete”, the Oil Ministry website SHANA reported on Sunday.

The comments by Mohammad Ali Khatibi made clear again that Iran, the world’s fifth-largest crude exporter, believed that the Organization of the Petroleum Exporting Countries needed to reduce output further to help boost the market.

“The increase in the level of oil stocks in the market indicates that there has been no balance established,” Khatibi, speaking ahead of OPEC’s May 28 meeting in Vienna, said.

” ... the drop in the level of (OPEC’s) output ceiling has not been adequate and consequently OPEC’s work is incomplete and thus (it) must complete its work,” he said.

Khatibi, who has also previously advocated a further output reduction, said a recent recovery in the price of oil was not based on fundamentals but due to a lower dollar, SHANA said.

OPEC has previously agreed to reduce production since September by about 4.2 million barrels per day, or about 5 percent of world supply. It is estimated to have delivered around 80 percent of those cuts so far.

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