Iran suggests $100/barrel oil lowest appropriate

guardian.co.uk

TEHRAN, Aug 31 (Reuters) - Iran's oil minister said $100 for a barrel of crude was the lowest appropriate level, echoing a figure cited by another price hawk Venezuela ahead of OPEC's meeting in September.
Oil has fallen from a record level around $147 a barrel in July to around $115 a barrel.
Asked if crude priced at $100 a barrel was appropriate, Gholamhossein Nozari was quoted on Sunday as saying by the ministry website SHANA: "This is the least price for oil." He also said he expected prices to rise as winter in the northern hemisphere approaches, pushing up demand.
"Regarding the start of the cold season and the increase in consumption, we will move towards an increase in crude prices. These factors can push prices to an acceptable level," he said.
Venezuela, like Iran, has in the past spurned calls from big consumers like the United States to hike output, even when prices hit records.
But Venezuelan President Hugo Chavez, in a departure from previous rhetoric, said earlier in August it was a good thing oil prices had fallen. He said the price should settle near $100 a barrel, calling prices near $150 "irrational".
Iran, the second biggest producer in the Organisation of the Petroleum Exporting Countries, has previously said the market was oversupplied.
Asked if the issue of commitment to OPEC quotas would be discussed when the cartel meets on Sept. 9, Nozari said: "If this issue will have an impact on prices, it will certainly be among the main topics at the meeting."
Most commentators predict OPEC will leave output targets unchanged when it meets in Vienna.
Saudi Arabia, OPEC's biggest producer, said in June it would increase output to try to calm prices.
Asked about Saudi Arabia's output hike, he said: "The extra supply of crude to the market has had an impact on prices. It is not only Saudi Arabia that has an increase in supply, but a rise of supply by some other members can also have an impact."
Iran has also reported a very modest increase in output. The minister said this month Iran's output hit 4.235 million barrels per day (bpd), 5,000 bpd higher than the previous record in June. Iranian production last year was about 4.1 million bpd. (Writing by Edmund Blair; Editing by David Holmes)