Iran: OPEC members should maintain their output levels in tune with the market needs and further stick to their quotas.
Iran's OPEC Governor Mohammad Ali Khatibi Tabataba'ee said on Friday that OPEC members should maintain their output levels in tune with the market needs and further stick to their quotas. Khatibi made the remark when asked to comment on predictions that oil demand will fall in the first and second quarters of 2010 compared to that in the fourth quarter of 2009.
"Based on estimates of majority of well-reputed oil institutions, the average demand for oil will be one million barrels per day in 2010," He told the Islamic republic news agency.
He added that demand for OPEC crude will be weak in the first half of 2010, while it will be strong in the second half.
He noted that demand for OPEC crude in the first quarter of 2010 will be 28,500,000 bpd, while it will decrease to 27,500,000 bpd in the second quarter.
The official added that current OPEC production stands at about 29 million bpd, quite above demand for the first and second quarters of 2010.
If the OPEC members continue to produce oil the way they do, oil will be stored in the inventories both in the first and second quarters of 2010, said Khatibi, adding that OPEC's advice to the members in its Angola session in December 2009 to lower output levels in the first half of 2010 from present 29 million bpd is sound and logical.
Elsewhere in his remarks, Khatibi said OPEC's average crude basket price was 60 dollars in 2009. If the OPEC members well observe their quotas in the first half of 2010, the average price for the crude will be 70 dollars in 2010.