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Iran says $55 oil price suitable, sees supply cut extension

Published 05/06/2017, 11:16 AM
© Reuters. FILE PHOTO: Iran's Oil Minister Zanganeh talks to journalists during an OPEC meeting in Vienna
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DUBAI (Reuters) - Iran sees $55 per barrel as a suitable price for crude oil, and believes that OPEC and non-OPEC producers are likely to extend output curbs to support prices, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Saturday.

"The price range of $55 per barrel would be suitable for oil," Zanganeh said, according to the oil ministry's news website SHANA.

Oil prices closed higher on Friday, rebounding from five-month lows, following positive U.S. jobs data and assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts to reduce a persistent glut.

Brent futures gained 72 cents, or 1.5 percent, to settle at $49.10 a barrel.

Zanganeh said members of the Organization of the Petroleum Exporting Countries (OPEC) have signaled that they are leaning towards extending the supply cuts, SHANA reported.

"I think non-OPEC oil producers will also second (an) extension of the plan," said Zanganeh, speaking on the sidelines of an energy fair in Tehran.

OPEC and non-OPEC ministers are due to meet on May 25.

© Reuters. FILE PHOTO: Iran's Oil Minister Zanganeh talks to journalists during an OPEC meeting in Vienna

They appear likely to extend their agreement to limit supplies beyond its June expiry to help clear a glut, three OPEC delegates said on Thursday, downplaying the chance of additional steps such as a bigger cut.

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