Iran Good to $25 | Russell T. Rudy Energy LLC
Iranian Oil Minister Bijan Zanganeh contends that Iran is fine with oil prices dropping to as low as $25 per barrel, according to a recent article in “Rigzone”. In spite of behind the scenes lobbying by Iran and Venezuela to get other OPEC members to cut back on production and restore prices, Iran is publicly staying in line.
Predictably, there is a spit between the Persian Gulf states and other members of the cartel. Saudi Arabia and Kuwait, who can withstand the recent dramatic price drops, want to defend market share against new sources of production such as U. S. shale oil. Some of the other members, including Iran and Venezuela, want to maximize prices and restore revenues for their countries. However, they want the requisite production cutbacks to come from the Gulf states, which only exacerbates the divide.
Nevertheless, Zanganeh indicated that Iran has no plans to cut production and no meetings scheduled with the Saudis to discuss the matter further. In a statement he went on to say “Even if the oil price goes down to $25 a barrel, the oil industry will not be threatened.”
To read the article in its entirety, please go to www.rigzone.com/news/article.asp?hpf=1&a_id=136828&utm .
