Opec needs to cut oversupply from the oil market and needs support from non-Opec producers, Iran's Opec governor Mohammad Ali Khatibi said in remarks published today ahead of next week's meeting of the group.
Ministers from the Organisation of the Petroleum Exporting Countries meet in Algeria on Wednesday to try to shore up oil prices that have fallen more than $100 a barrel since July. US crude traded yesterday at around $46 a barrel.
Opec is expected to announce another output cut in Algeria, adding to the group's recent curbs amounting to about 2 million barrels per day.
"In order to get out of the existing condition, we have to remove oversupply from the market so that (the market) would be balanced. Once it is balanced, we would have desirable prices," Mr Khatibi told the oil ministry's news website Shana.
"Opec countries are in agreement with this policy and that is why we need to get support from non-Opec for this policy."
The depth of the price fall has focused all producers on the need for action and Russia, the biggest non-Opec exporter, is sending its minister and its deputy prime minister to the talks in the Western Algerian town of Oran.
Iran and others have said in the past that the impact of Opec cuts could be undermined if non-Opec oil producers did not cooperate.
Mr Khatibi said the Algeria meeting would include discussion of Opec's decision to reduce output by 1.5 million bpd, agreed in October and effective from November 1st.
Opec deferred a further output cut decision at a meeting in Cairo last month. Delegates said Saudi Arabia and its Gulf allies demanded tighter adherence to existing curbs, with some fingering Iran. Tehran says it is sticking by its commitments.
"It has been decided that in the Algeria conference the level of implementation of the October decision to cut 1.5 million barrels per day will be examined, and on that basis a decision will be made accordingly," Mr Khatibi said.
Any shortfall in implementing that cut would mean "a repeat cutback would have the same destiny," he said.
Mr Khatibi said oil demand was expected to remain "very weak" next year.
"Opec will have to consider internal and external issues in arriving at consensus in connection with a cutback in the output ceiling," he said.
Reuters