Crude Suppliers Content with Oil Prices at $55-60/b: Iran

“The oil market is moving towards rebalancing of supply of demand and no one has ever imagined this to happen all at once,” said the official.

Asked whether the upward trend of oil prices will continue, Zangeneh said, “It cannot be said for sure that the upward trend will continue, and no one has had such an expectation; most of the estimates indicate that the price of oil will be fixed at around $55/b, but these are just forecasts and things may change over time.” 

If the prices grow to around $70/b, supply will rise to a level that supply-demand balance will be disturbed causing prices to fall, said the official. 

Asked about tenders for developing oil fields, Zangeneh said preparations for arranging the tenders are under way and the list of qualified companies has been produced for inviting them to the tenders. 

Asked about the fate of proposal by Indian developers for developing Farzad B gas field, he said the proposal has been rejected. 

“The Indian company is required to modify the proposal; but at the same time we are considering a second plan and the Indians would not have much time.”