Petrol Stop

Global oil market oversupplied: Iran OPEC governor

Saturday, 09 April 2011

09 April 2011;timesofindia.indiatimes.com:TEHRAN: Iran sees the global oil market as oversupplied, despite prices that have been pushed up by upheaval in the Middle East, its OPEC governor was quoted as saying in a newspaper published on Saturday. "Not only is there not a shortage of supply in the oil market but there is 1 million barrels (per day) of excess supply," Mohammad Ali Khatibi told Sharq daily in an interview. He also warned that prices would continue to increase if the Libyan crisis persists and would "explode" if there were any security problems in Saudi Arabia. "By the beginning of the high travel season gasoline consumption will increase, and considering the shortage of Libyan crude it is natural to expect an oil price hike," Khatibi told the daily. "In the event of any security problems occurring in OPEC's biggest oil producer (Saudi Arabia), there would be no price hike, but rather a price explosion," he added. Khatibi reiterated Iran's stance that there is no need for any emergency OPEC meeting or output increase. Price hawk Iran, holds the rotating OPEC presidency and has responsibility for coordinating any emergency meeting with OPEC's Vienna-based secretariat. The next scheduled meeting is not until June 2.