Oil prices dip af­ter Iran says it won’t freeze out­put

Pakistan Observer - - ECONOMY WATCH -

SIN­GA­PORE—Oil prices dipped in Asia Mon­day af­ter Iran said it has no plans to join any out­put freeze by other ma­jor pro­duc­ers. The Or­ga­ni­za­tion of the Petroleum Ex­port­ing Coun­tries—of which Iran is a mem­ber—is due to meet in Vi­enna on June 2, af­ter talks in Doha in April in­volv­ing OPEC mem­bers and other ma­jor pro­duc­ers such as Rus­sia failed to reach a deal to cap pro­duc­tion.

De­spite a re­cent re­bound, world crude prices are still be­low half their lev­els in June 2014 due to over­sup­ply. Iran only re­turned to world oil mar­kets in Jan­uary af­ter the lift­ing of nu­clear-linked West­ern sanc­tions. At about 0630 GMT, US bench­mark West Texas In­ter­me­di­ate for de­liv­ery in July, a new con­tract, was down 51 cents, or 1.05 per­cent, at $47.90 a bar­rel. Brent North Sea crude for July was down 42 cents, or 0.86 per­cent, at $48.30.

Bloomberg News re­ported that Rokned­din Javadi, man­ag­ing di­rec­tor of Na­tional Ira­nian Oil Co., told Iran’s Mehr news agency that “the govern­ment has no plans for the time be­ing to freeze or in­ter­rupt its in­crease in oil out­put and ex­ports based on plans that are be­ing car­ried out”.—AFP

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