The Iranian oil minister wants to bring Tehran's production to 4 million barrels a day. Neither OPEC nor Russia appear eager to decrease production. The dollar strengthened after President of the Federal Reserve's statement.
Hong Kong (AsiaNews / Agencies) – Oil prices are down once again on the back of a strenghtened value of the dollar and the statements made by the Iranian Minister for Oil, which has decided to increase production, even though currently there is a global surplus.
Minister Bijan Zangeneh said Iran needs to increase its production in order to regain lost market share during the period under international sanctions, which were lifted in January. Since then Tehran is trying to reach the quota of 4 million barrels a day. It has now reached a height of 3.8m.
This morning at 12 (local time), the price of West Texas Intermediate was at $ 46.34; Brent at 48.31. Compared to yesterday's prices which fell by 1.6 dollars a barrel.
The dollar strengthened after the head of the Federal Reserve, Janet Yellen, reported a few days ago that the US could now afford an increase in interest rates.
An OPEC and Russia meeting is scheduled for later in September to study ways to raise the price of oil. However, none of the parties seems willing to reduce production.