OPEC members should not flout quotas: Iran
Tehran Times Economic Desk

TEHRAN — OPEC members should maintain the agreed quotas in order to prevent decline in oil prices and oversupply of the product, Iran’s OPEC governor said here on Friday, SHANA reported.

“In its next week meeting, the Organization of the Petroleum Exporting Countries is to discuss matters such as the need for some members to cut their output and also for the organization to maintain its overall production limit,” Mohammad-Ali Khatibi added.

“OPEC members should reduce their production and keep the specified quotas in order to solve the oversupply problem and help the market reach a balance,” he explained, noting that currently the OPEC members are producing 500,000-700,000 barrels more than the amount they are supposed to produce.

“If this OPEC decision leads to stability in the market there is no need for any other action. Otherwise OPEC should make new decisions,” he added.

While saying that an oil price of $100 per barrel is appropriate in current conditions, Iran’s OPEC governor noted that cold weather in the coming winter, improved global economic conditions and a stronger U.S. dollar could boost the market.

“But since we are not aware of these conditions’ changes in the future, we can’t predict a precise price for oil in the future,” he said.

The Organization of the Petroleum Exporting Countries does not officially have quotas but the term is sometimes used to describe agreed output targets for each member country. Some, notably Saudi Arabia, have been producing above these targets

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