Iranian Official Says Global Crude Oil Crisis Approaching

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"The era of cheap crude oil supply is already over, OPEC official says."

Iran's representative at the Organization of the Petroleum Exporting Countries (OPEC) Mohammad Ali Khatibi said Tuesday that the era of cheap crude oil supply is already over and the global oil crisis is approaching, the semi- official Mehr news agency reported.

Talking to Mehr, Khatibi said the era of producing and supplying the cheap crude oil is already over and in future the global production of the crude oil will drop, adding the uncertainty crisis over the crude oil supply to the world market is approaching.

Talking ahead of the 158th meeting of the OPEC to be held in Ecuador, Khatibi also said studies show that in the mid-term perspective the crude oil prices will soar in the global market.

In 2011, it is something natural for the crude oil to be supplied at 100 U.S. dollars a barrel, said the Iranian official.

In recent years, some of the none-OPEC oil producers have oversupplied the market which will be unlikely to happen in the future, he said.

It is even possible that the OPEC members to decrease their output in the mid-term run and this causes major concerns over the stable supply of the crude oil in the energy market, he added.

The 157th meeting of OPEC decided to transfer the presidency of the organization to Iran from January 2011. For the first time in the past 36 years, Iranian Minister of Oil Masoud Mirkazemi was elected as chairman of OPEC at a one-day meeting in Vienna.

The OPEC is a cartel of 12 developing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

Iran, one of the OPEC members, is the world's fourth largest oil producer.

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