Rising US Crude Output Reason behind Falling Oil Prices: Iranian Oil Minister
TEHRAN (Tasnim) – Iranian Oil Minister Bijan Namdar Zanganeh said an unexpected rise in US crude oil production is the reason behind recent drops in oil prices.
“The cause of the fall in oil prices is the unforeseen increase in US oil production,” Zanganeh told reporters on the sideline of a cabinet session in Tehran on Wednesday.
Over the past few years, the US oil output has risen by about 900,000 barrels per day (bdp) and this is more than what the Organization of the Petroleum Exporting Countries (OPEC) had predicted, he added.
The oil minister further said that the Islamic Republic is in talks with other OPEC members for a decision on the issue.
Rising US crude output has undermined OPEC-led cuts, with production up more than 10 percent in the past year, according to media reports.