Iran sees oil market ‘volatile’

February 28, 2011 - 0:0

TEHRAN -- The oil market is changing rapidly, Iran's OPEC governor Mohammad-Ali Khatibi stated.

The Organization of Petroleum Exporting Countries is unable to act for now in the absence of clarity about Libya's evolving situation.
Mohammad-Ali Khatibi, Iran's OPEC governor, told Shana news agency on Sunday that ""unrest in the Middle East and North Africa and the global increase in crude prices have created instability for OPEC countries and at the same, the organization cannot do anything about it.""
Khatibi said the group would need more clarity about how long the disruptions would last before deciding how to proceed.
“Everything is very uncertain and we need a stable situation and accurate data on how many barrels are lost from the market and then we can act,” Reuters quoted Khatibi last Tuesday.
“We need a stable situation to see the impact of these developments on the market. OPEC cannot decide every day,” he added.
The political developments in the Middle East and North African regions are spreading to other countries rapidly and “OPEC can do nothing about such political problems” in these states.
The group, however, is supplying more crude oil to the market than the demand, said Khatibi quoted by Press TV.
He said the psychological impact of political developments in the Middle East and North Africa is the main reason behind the climbing price of oil.
The Libyan revolution and the intensifying political unrest in the North African country heavily contributed to pushing the price of Brent crude oil to above $105 per barrel.
Iran holds the rotating presidency of OPEC, but its minister has stayed away from producer-consumer talks in the Saudi capital Riyadh.
Iranian Oil Minister Massoud Mirkazemi said on February 6 that there is no need for OPEC members to hold an emergency meeting, even if prices rise as high as $120 a barrel.
“I don’t see a need any time soon for an emergency meeting,” he said.
“So far, no request for an emergency meeting has been made by any of the member states,” he added.
The Organization of Petroleum Exporting Countries plans to hold its next regular meeting in June. Iran currently holds the OPEC presidency.