Oil price under oversupply pressure

The market price of oil is under pressure from the over supply of crude, Iran ’s oil minister, Bijan Namdar Zanganeh said.

Zanganeh made the remarks upon his arrival in Vienna on June 3 to take part in the 167th Ministerial Conference of the Organization of the Petroleum Exporting Countries (OPEC) and the 6th OPEC International Seminar.

While commenting on the possibility of a decision to cut production by OPEC during its June 5 meeting, Zanganeh said it depends on the member countries’ political will and the negotiations until that meeting.

However, he said that he couldn’t predict the outcome of the OPEC meeting, Iran ’s official IRIB news agency reported.

Zanganeh also said that OPEC members are not expected to elect a new secretary general in the upcoming meeting.

In the 6th OPEC International Seminar, Zanganeh will chair a specialized meeting on the stability of the global crude oil market.

The oil ministers of Iraq, Venezuela , India and Saudi Arabia , as well as Secretary General of the International Energy Forum, Aldo Flores-Quiroga and Secretary-General of the Energy Charter Secretariat Urban Rusnak will attend the OPEC meeting in Vienna .

In its November 2014 meeting, OPEC left the ceiling of production unchanged, despite calls by some members such as Iran and Venezuela to reduce production to shore up prices.

Iran wants other OPEC members to make way for a rise in its exports if it succeeds in reaching a final deal with six world powers over its nuclear program. A deadline for agreement on the nuclear issue falls on June 30.

By holding 157 billion barrels of recoverable crude oil reserves, Iran possesses the world’s fourth largest reserves of crude oil.

Iran’s current oil production is estimated to be around 2.8 million barrels per day of which about one million barrels are exported.