Vienna (IP) – Iran's Minister of Petroleum has said there is an oversupply in the crude oil market, adding OPEC and non-OPEC producers need to discuss how to ensure market balance.

Iran Press/Iran news: Speaking to reporters upon arrival at his hotel in Vienna, Bijan Zangeneh said: “There is no doubt about the supply and demand imbalance in the oil market meaning there is more supply than demand.” 

Asked whether the coronavirus outbreak had affected Iran’s output, he said: “We are producing like before. Of course, in the transportation [sector] inside the cities, we have witnessed a reduction in consumption,” Shana reported.

Speaking ahead of the 178th OPEC meeting, he said: “I believe we have an oversupply in this situation because the situation is very sensitive and after the coronavirus situation we have an oversupply in the market and it’s necessary that OPEC and non-OPEC producers do something to restore balance to the market.”

The Iranian Minister of Petroleum further said that discussions were needed to decide the level of output reduction by the member states of the Organization of the Petroleum Exporting Countries (OPEC).

According to the study of OPEC secretariat, he said that at least it’s necessary to reduce output by about half a million barrels.

“It’s a recommendation of Joint OPEC and Non-OPEC Joint Technical Committee (JTC) for reduction of around half a million barrels,” Zangeneh added.

Responding to a question of whether Iran is pursuing a policy of more than 500,000 barrels of oil reduction, Iran's Petroleum Minister added politics is working here not experts' view on the number.

Asked about Russia’s stance on production cuts he said: “I believe that the Russians would resist until the last moment not to lower their output.”

Coronavirus had no impact on Iranian oil production

Iran's Petroleum Minister said that the outbreak of the coronavirus had no impact on Iranian oil production and Iran is producing it oil as before.

Zangeneh arrived in Vienna, Austria on Wednesday morning to attend the 178th OPEC Meeting and the 8th OPEC and Non-OPEC Joint Ministerial Meeting, which will be held at the organization's headquarters in the capital city on March 5 and 6.

At the meeting, oil-exporting countries' ministers are set to decide on further cuts in production to counter the negative effects of the coronavirus on demand.


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