One barrel of oil costs below $10 for producers

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A barrel of oil costs below 10 dollars for the producers, Director of Petroleum Ministry for OPEC Affairs and Relations with Energy Circles Mehdi Asali said on Wednesday.

Asali said that after oil prices slump, foreign investors come to the Middle East due to low cost of oil production in the region.
The reason behind Iran’s economic growth is doubling of oil exports and gradual increase of prices in the next year, he said.
He said that estimates put oil price for the next year between 35 to 50 dollars.
He said that according to International Monetary Fund, even if oil prices fall to 30 dollars, Iran’s economic growth will stand at 4.5 to five percent.
Asali contended that oil prices in annual budget should be set considering realities on the ground as low oil prices in the budget will adversely impact the oil market.
Referring to increasing demand for oil next year, he said based on OPEC forecasts next year the figure is to stand at one million to 1.2 million bpd.
Demand for oil next year will reach over 94 million barrels from the current 93 million barrels, Asali said.
As to coming back of Iranian oil to market and OPEC’s move to prevent the oil price fall, he said that all OPEC members should foster consensus because they all know that continuation of the trend is not to their benefit.
Describing the countries’ political interests as the main contributor to oil price falls, the official said that Saudi Arabia, Kuwait and Qatar earn huge amounts of income from oil exports and Saudi Arabia currently suffers a loss of 180 million dollars a day.
Saudi Arabia has conditioned reduction of oil production on the same by Iran, Iraq and Russia, he said.
Currently, Iran exports one million bpd to China, India, South Korea, Japan and Turkey but lifting the sanctions will change the situation.

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