By Nigar Abbasova
The Islamic Republic of Iran, the third-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), is ready to support stabilization of the oil market.
Iran’s Oil Minister Bijan Zanganeh said that Tehran backs any measures aimed at stabilizing the oil market, following a meeting with the OPEC’s new secretary-general Mohammed Barkindo, who has been trying to gain support for the plan of output freeze, Ria Novosti reported.
The sides discussed recent developments that occurred in the “black gold” market as well as the issue of putting ceilings on oil production, which is expected to be high on agenda during the upcoming Algeria meeting of OPEC and non-OPEC states on the sidelines of the International Energy Forum.
Iran, which is the fourth in the world for the volume of proven oil reserves, has long argued that it cannot freeze production while it is recovering from years of sanctions that have profoundly affected the country's energy sector, restrained its production and export of oil and gas.
Nevertheless, most of experts say that the country will reach its pre-sanctions level in the short run. Announcement of the Iranian oil minister is now expected to positively influence oil prices.
The price of the US Light crude oil increased $0.37 to stand at $45.35 on NYMEX, while Brent crude oil at the London ICE (InterContinental Exchange Futures) rose $0.09 to trade at $47.78 on September 6.
The price of a barrel of Azeri Light crude oil increased $0.80 to stand at $47.91 on the world markets.
Russia and Saudi Arabia, earlier agreed to take certain measures, with a view to stabilize the oil market, tackle weak prices and rein of oversupply, as well as maintain stability and provide sustainable level of long-term investment.
The two oil giants made a joint statement within the framework of the running G 20 Hangzhou Summit prompting Brent to jump almost 5 percent.
The situation in the oil market, which is currently focused on the Algeria meeting, is mainly determined by the constantly changing expectations on whether cartel members and other participants will be able to reach agreement.
Hit by global oversupply, the prices fall from above $100 two years ago to below $30 earlier this year.
Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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