The Minister of Petroleum of Iran, Bijan Zanganeh, expresses concern about the rising price of the crude oil, believing that the strengthening global economy which increases demand could lead to more output from Shale producers in the U.S. Higher prices also encourage producers to hedge future output, adding to supplies.
Bloomberg writes that higher prices are welcome by certain OPEC members like Iraq and Saudi Arabia as a way to plug government deficits. Mr Zanganeh, however, has warned that the group risks overheat the oil market as crude prices head toward $70 a barrel. According to Mr Zanganeh, prices have climbed in recent days because of production cuts and increased demand for petroleum products due to cold weather.
Go to OPEC Doesn’t Want Brent Over $60 a Barrel, Says Iran’s Oil Minister