Apr 22, 2020, 2:22 PM
Journalist ID: 1195
News Code: 83760826
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OPEC can't solve oil market problem alone, oil minister says

Tehran, April 22, IRNA – Iran's Oil Minister Bijan Zangeneh said on Wednesday that the oil market problem cannot be solely solved by the Organization of Petroleum Exporting Countries (OPEC) and it needs a global cooperation, taking into consideration the excessive supply and a decrease in demand along with the uncertainty about the coronavirus pandemic end.

Addressing a cabinet meeting, Zanganeh said that the coronavirus crisis led to a sharp decrease in oil consumption because an important part of the aviation industry was shut down.

He underlined that estimates had indicated that there would be a 3 million barrels per day of excessive supply in the second quarter of 2020, but in the last OPEC meeting it turned out to be 14 million barrels that meant the coronavirus pandemic had decreased demand by 11 million barrels more than expected.

The price war which started in March added to the crisis, especially when some oil exporting countries increased their production, according to Zangeneh.

The top oil official stressed that the excessive supply must be collected from the market, adding that OPEC, therefore, decided to cut its daily production by 10 million barrels.

He urged that non-OPEC oil producers, including American and Canadian Shale oil, produces which didn't make any commitment, cooperate, and cut their outputs.

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