Iran wants Opec output cut in Jan

The Economic Times:

Opec heavyweight Iran thinks the oil cartel should cut its production ceiling by 1 million barrels per day when it meets on January 31, Iran’s oil minister was quoted as saying in a newspaper interview on Wednesday.

“I think if a decision is made on about 1 million barrels, it is a good figure with respect to market fundamentals,” Kazem Vaziri-Hamaneh told a local newspaper when asked how much he thought Opec should cut its production quota by at its next meeting. READ MORE

Iran’s deputy oil minister Mohammad Hadi Najad-Hosseinian also told reporters in New Delhi on Wednesday that Tehran favoured an Opec output cut after the northern hemisphere winter. “Usually after winter, oil demand goes down and they (Opec) should cut output to ensure that the prices remain stable,” he said after meeting Indian officials. He added that he expected crude oil prices to remain between $50 and $60 a barrel in ’06.

Opec president Sheikh Ahmad al-Fahd al-Sabah told reporters on Monday the oil cartel was likely to decide in January to cut production from the second quarter of ’06 as it expected the call on its crude to decline by 2 million barrels per day.

Meantime, oil prices were steady on Wednesday as warmer than usual US weather curtailed heating fuel demand. US February crude futures were up 14 cents at $58.3 a barrel, having eased 27 cents on Tuesday, the first session of post-holiday trade. London Brent crude was up four cents at $56.33 barrel.

Prices are up 33% since January and have averaged $56.7 a barrel, almost 37% more than the ’04 average. Analysts forecast a price of $57.3 for ’06.