Overproduction could hurt oil prices in 2001-Iran
TEHRAN, Oct 9 (Reuters) - Iran's OPEC governor said on Monday that current
overproduction could hurt crude oil prices in the second and third quarters
of 2001.
``If the current supply-demand balance stays without change, prices
could fall from next spring due to overproduction,'' Hossein Kazempour
Ardebili told Reuters on the sidelines of a seminar in the oil ministry's
research institute.
Iranian oil sources have said that OPEC members are producing a total
of around 300,000 extra barrels of oil over their quotas per day.
Kazempour Ardebili said Iran thought an OPEC basket price of $25 per
barrel acceptable.
``$25 per barrel is the target price for Iran too,'' he said. ``If prices
top $28 for more than 20 days, Iran is committed to the OPEC decision to
increase production.''
OPEC's crude basket price stood at $28.75 a barrel on Friday. The price
has remained above $28 since the price mechanism was restarted on October
1.
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