Iran: Low Investment to Push up Oil Prices in Future

TEHRAN (FNA)- Iran’s OPEC Governor Mohammad Ali Khatibi said there will be a leap in crude prices in the future if desired investments are not made in oil production at the time of surplus supplies in the market.

“We will face straits in future if the investments are cut or fallen,” he told the Iranian students news agency.

Also concerning the cut of one billion barrels of oil demands in the US, Khatibi said “it is crystal clear that as confirmed by the market condition, crude demands have been declined in consuming countries and particularly in industrial ones.”

He also said European states and some Asians’ demands have dropped off and handling the condition needs a balance between supply and demand.

Last week shortly before the OPEC members meeting in the Egyptian capital of Cairo the US Energy Ministry declared its oil demands have been cut within the last four weeks and added during the period the request has reached 19.200 million barrels a day which has dropped by 6.6 percent comparing to the same period in 2007.

Also concerning the possibility of a leap in crude price to 200 dollars by the next year Khatibi said the issue is closely related to the world economic condition, if the current meltdown is resolved, the figure may come true, but some believe the economic turmoil will last by another year and the global oil demands will definitely change the current economic condition.

He also moved to the Cairo meeting and said the gathering did not conclude a decision for changing OPEC outputs and countries are waiting for the cuts in Algeria meeting in December.

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