TEHRAN — Those Arab members of the Organization of Petroleum Exporting Countries which have increased their oil output in recent months to compensate Libya’s production cut, should reduce their output because the global market is oversupplied, Iran OPEC governor said.
Mohammad-Ali Khatibi told the Mehr news agency on Monday that secretary general of OPEC has offered the Arab members of OPEC to cut their oil output, because the gradual return of Libyan oil production was bolstering oil supplies.
He warned that global demand may fall as the economic slowdown in the Europe spreads to United States Asian markets.
Khatibi emphasized that at now there is no oil shortage in the global market, so OPEC will not increase its output. Iran currently holds OPEC's rotating presidency.
The price of a barrel of oil is trading near its lowest point in a year because of fears of a double-dip global recession.
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