Iranian Oil Minister Bijan Namdar Zanganeh says there is an oversupply in the crude oil market, saying OPEC and non-OPEC producers need to discuss how to ensure market balance.
Speaking to reporters upon arrival at his hotel in Vienna, Mr. Zanganeh said: “There is no doubt about the supply and demand imbalance in the oil market meaning there is more supply than there is 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 reduction in consumption.”
Speaking ahead of the 178th OPEC meeting, he said: “I believe we have oversupply in this situation because the situation is very sensitive and after the coronavirus situation we have oversupply in the market and it’s necessary that OPEC and non-OPEC do something for the balance in the market.”
The minister further said that discussions were needed to decide the level of output reduction by the Organization of the Petroleum Exporting Countries (OPEC) member states.
According to the study of OPEC secretariat, he said, at least it’s necessary to reduce about half a million barrels.
“It’s a recommendation of JTC for reduction of around half a million barrels,” Mr. Zanganeh added.
“We must see. Expert figures do not work here. Politics works here.”
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.”