Iran official says $100 oil price "appropriate"
Guardian
05-Sep-2008 (13 comments)
TEHRAN, Sept 5 (Reuters) - Iran's OPEC governor said an oil price of $100 per barrel was "appropriate" in current conditions, the Oil Ministry's news agency Shana reported on Friday. The oil minister of the world's fourth-largest crude producer had said earlier in the week that $100 a barrel was the lowest appropriate price. Crude has tumbled from a record $147 in July and was trading on Friday at below $107. OPEC governor Mohammad Ali Khatibi, speaking four days before a ministerial OPEC meeting in Vienna, also reiterated Iran's view that OPEC members should cut output to their agreed targets so that oversupply on the market was reduced. "The $100 per barrel price, in the current conditions, is appropriate," Shana quoted him as saying. Khatibi added that the price "should change based on conditions and expenses that are created in the future." Oil Minister Gholamhossein Nozari on Tuesday had said OPEC must discuss crude oversupply when it meets and again indicated that OPEC's second largest producer wanted the group to prevent oil from hitting $100 a barrel, according to the IRNA news agency. Nozari had earlier said $100 was the lowest appropriate price. Iran is traditionally hawkish on price. Another price hawk, Venezuela, said record prices near $150 were "irrational" and that they would probably settle around $100. Khatibi earlier this week told Reuters OPEC may need to cut oil supplies by as much as 1.5 million barre... >>>
Shining Head

Stupid Statement !

by Shining Head on Fri Sep 05, 2008 05:22 AM PDT

I don't know what kind of idiot makes a statement like this? For an oil producer the higher the price, the more the revenue. What should he be statting that "$100 per barrel is appropirate" while the price was as high as $140 not too long ago?

This statement only makes sense, if the oil price were expected to tumble far below $100.

The interesting part is that   "W" and his doodool Chini are enjoying their lives no matter what the oil prices; because the gas price is not going to come down at the pump, no matter what the oil producers make!



Balatarin
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Kaveh Nouraee

Big Boy

by Kaveh Nouraee on Mon Sep 08, 2008 09:19 AM PDT

You can think that all you like. I won't keep you from it.

Speaking out about maintaing prices at "a reasonable level" is one thing. Stating that $100 per barrel is reasonable is the idiocy that I am speaking about. This moron should have kept it vague. He didn't say "reasonable level". He indicated an actual price point. THAT is what makes him an idiot.

I happen to know my position is correct. I'm not going to use any more of my valuable time giving a free primer on either basic economics or on the proper method of selling goods and services.

We can just disagree, and leave it at that.


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Oil At $65 Per Barrel!!!

by Killjoy (not verified) on Sat Sep 06, 2008 06:47 AM PDT

The official was correct in hoping that crude oil prices stay at $100 level.

They have dropped from $147 about a month ago to 106.70. Yesterday, the price per barrel plummeted to $105 level and next week the prices are expected to go down even further.

Recently Mr. David E.T. posted a news item as a blog on iranina.com, but it went unnoticed by most readers or at least no one was interested enough to comment on it.

It's a great article worth reading. Here's the link:

//articles.moneycentral.msn.com/Investing/Sup...


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OPEC production has gone up

by Big Boy (not verified) on Fri Sep 05, 2008 08:50 PM PDT

OPEC production has gone up (thanks to the Saudis who raised output this summer), but has not been able to keep pace with the increase in demand. Hence the price increase.

Now, price up, demand down, so price has come back down.

Back to original argument that if price goes up too quickly, consumers will reduce demand and look for alternatives. If this keeps up, Mid-east countries will have nobody to sell to and will just choke on their own oil.

So the Iranian dude who made that statement about maintaining price at the reasonable level was quite brilliant.


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Not True...

by Big Boy (not verified) on Fri Sep 05, 2008 06:30 PM PDT

In fact OPEC production has increased because of the Saudis (check the news clippings from June/July). However, the percentage increase in demand has been far greater than the percentage increase in supply...hence the increase in price.

Now, US data has shown significant decline in demand, and a decline in price of oil...WHICH takes me back to my original point. if demand goes down too much, because OPEC got too greedy, then deamnd will go down much further and faster and the mid-east oil producing countries will choke on their own oil.

So, that Iranian official was brilliant in saying they must support the $100/barrel and not let it go up again.


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Kaveh Nouraee

Big Boy

by Kaveh Nouraee on Fri Sep 05, 2008 05:12 PM PDT

OPEC production levels have been stagnant while prices are through the roof.

The prices are from speculators.


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Right...

by Big Boy (not verified) on Fri Sep 05, 2008 04:50 PM PDT

Commodities exchange sets the price based on OPEC production, which means he who decides supply, decides price...how monopolies operate.


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no difference

by Anonymous Iranian (not verified) on Fri Sep 05, 2008 04:37 PM PDT

$107 or $147 a barrel is not going to make a difference for majority of Iranians.The Iranian government is going to mismanage the money that is generated from selling the oil anyway . Nobody know how much money has been made or no one can question where the money is going.so relax and let them do whatever they want to do with the oil money send them overseas or whatever they please.


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Kaveh Nouraee

Then

by Kaveh Nouraee on Fri Sep 05, 2008 04:30 PM PDT

that makes him a bigger idiot, because he didn't say that at all.

OPEC controls supply, the commodities exchanges sets the price.


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Yes But....

by Big Boy (not verified) on Fri Sep 05, 2008 04:10 PM PDT

Kaveh,

That would be true except since OPEC is the price maker and not the price taker (i.e. they can control supply to set the price) for him to say "it is dictated by the market" or "it is dictated by OPEC" (which I suspect is what he meant) is essentially the same.


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Kaveh Nouraee

Big Boy

by Kaveh Nouraee on Fri Sep 05, 2008 03:23 PM PDT

It's a stupid and idiotic statement because the only proper statement is:

"The price of crude oil is dictated by market conditions."

End of sentence. That's it. That's all you are supposed to say.

To say a particular price point is appropriate is saying that other price points are not. It makes no difference if he is Iranian, American or Martian.


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Nothing stupid about that at

by Big Boy (not verified) on Fri Sep 05, 2008 02:20 PM PDT

Nothing stupid about that at all.

I won't go and explain demand and supply to you, but when oil is at $147, countries that depend on oil won't buy as much and will also look for other sources of energy (just listen to the political debates about energy already). So, if they succeed in doing that, then demand will go down and the oil producing countries will have to sell it for pennies (not literally, but say around $40), or choke on it (as an analyst in the Guardian noted a few weeks ago).

So it is a delicate balancing act between being greedy and simplistic (keeping oil at $150 bpd) or being practical and keeping it around $100. Oh and since you think an Iranian is stupid for saying this, you might want to listen to an American say T. Boone Pickens who says the same thing. Iranians says it, he's stupid, American says says the same thing, he's brilliant. What a world!!


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Kaveh Nouraee

What kind of idiot?

by Kaveh Nouraee on Fri Sep 05, 2008 12:22 PM PDT

You answered your own question when you posted this news item.

THAT kind of idiot.


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