TEHRAN -- The global oil market is oversupplied by 2 million barrels per day (bpd), Iran's oil minister said here Sunday, a day after the Organization of Petroleum Exporting Countries (OPEC) deferred a decision on a new output cut.
"Market assessments indicate that the market has around 2 million barrels per day of oversupply," Gholam Hossein Nozari was quoted by Iran's satellite Press TV as saying.
OPEC announced in Cairo on Saturday that it would maintain the current crude oil output until next month's meeting in Algeria.
OPEC President Chakib Khelil, who is also Algeria's energy and mines minister, made the remarks after a consultative ministerial meeting of the group to discuss ways to shore up the oil prices.
The ministers agreed to take any additional action to balance supply and demand and achieve market stability, Khelil said, adding that the oil cartel was concerned about the continued deterioration of the world economy and its impact on oil demand.
OPEC, which supplies about 40 percent of the global oil output, believed oil demand would be affected significantly amid concerns of world economic recession in the first half of next year.
"In the first quarter of next year we are probably going to have a decline in demand," Khelil said.
In recent months, the oil prices have dropped sharply. On Friday, it stood at around 54 U.S. dollars a barrel, declining by some 60 percent from over 147 U.S. dollars a barrel in mid-July.
OPEC had cut its oil output by 1.5 million bpd in October and is to discuss further cut at the upcoming ministerial meeting in the western Algerian town of Oran. Iran has also proposed another cut in oil output by around 1 million bpd.
Before the Saturday meeting, Saudi Oil Minister Ali Naimi said his country hoped to raise oil prices to 75 U.S. dollars a barrel, but no measures would be taken until the next meeting.
Qatari Energy Minister Abdullah al-Attiyah said the current crude prices were too low to sustain investments in the oil industry and it would be very difficult to boost output.
"Market assessments indicate that the market has around 2 million barrels per day of oversupply," Gholam Hossein Nozari was quoted by Iran's satellite Press TV as saying.
OPEC announced in Cairo on Saturday that it would maintain the current crude oil output until next month's meeting in Algeria.
OPEC President Chakib Khelil, who is also Algeria's energy and mines minister, made the remarks after a consultative ministerial meeting of the group to discuss ways to shore up the oil prices.
The ministers agreed to take any additional action to balance supply and demand and achieve market stability, Khelil said, adding that the oil cartel was concerned about the continued deterioration of the world economy and its impact on oil demand.
OPEC, which supplies about 40 percent of the global oil output, believed oil demand would be affected significantly amid concerns of world economic recession in the first half of next year.
"In the first quarter of next year we are probably going to have a decline in demand," Khelil said.
In recent months, the oil prices have dropped sharply. On Friday, it stood at around 54 U.S. dollars a barrel, declining by some 60 percent from over 147 U.S. dollars a barrel in mid-July.
OPEC had cut its oil output by 1.5 million bpd in October and is to discuss further cut at the upcoming ministerial meeting in the western Algerian town of Oran. Iran has also proposed another cut in oil output by around 1 million bpd.
Before the Saturday meeting, Saudi Oil Minister Ali Naimi said his country hoped to raise oil prices to 75 U.S. dollars a barrel, but no measures would be taken until the next meeting.
Qatari Energy Minister Abdullah al-Attiyah said the current crude prices were too low to sustain investments in the oil industry and it would be very difficult to boost output.
