Iran, Russia Issue Warning on Long-Term Crude Supply

Source:

"Iran's oil minister and his Russian counterpart warned on Monday that tumbling crude prices could hurt investment in the sector and affect long-term supply."

Iran's oil minister and his Russian counterpart warned on Monday that tumbling crude prices could hurt investment in the sector and affect long-term supply, the official IRNA news agency reported on Monday.

Iran's Oil Minister Gholamhossein Nozari held talks in Tehran with Russian Energy Minister Sergei Shmatko, two weeks before the Organization of Petroleum Exporting Countries (OPEC) is due to meet in Vienna on March 15.

Iran is OPEC's second largest exporter while Russia is the leading non-OPEC producer.

"The present oil price does not allow for long-term investment (in oil production) to guarantee its future market supply," IRNA quoted Shmatko as saying.

"The present oil prices cannot justify the production of oil in the years to come," he said.

Oil prices have plunged by more than $100 (Dh367) a barrel since a peak of $147 last July as demand has tumbled. To shore up prices, OPEC pledged to cut output by a total of 4.2 million barrels per day (bpd) since September.

"The oil consuming countries will face problems regarding their needed oil supply over the long run," said Nozari, in a clear reference to falling crude prices since mid-2007.

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