Iran’s Organization of Petroleum Exporting Countries (OPEC) governor said yesterday that the surge in oil prices to record levels was not sustainable. US light, a benchmark crude, climbed above $82.50 a barrel on Wednesday, the latest in a series of record highs this week.
Iran and other OPEC members have agreed to raise the group’s output by 500,000 barrels per day from November in a bid to rein in prices but this has failed to cool the market.
Hossein Kazempour Ardebili told state radio crude prices had risen on the back of a range of factors, such as geopolitical issues and turmoil in financial markets, and added, “This situation is not stable and cannot be permanent.”
Asked if he thought prices could reach $100, he said, “Yes, anything is possible. Cold weather, some OPEC members facing some political situations that they have faced in the past, instability which occurred in the past and other factors can send oil prices higher.”