'Oil could stabilise with Opec cut'

16 December 2008

Oil prices are expected to stabilise soon as a result of an impending production cut by Opec, it has been claimed.

Speaking to the Islamic Republic News Agency, Iranian oil minister Gholamhossein Nozari said if the cartel decides to cut output by between 1.5 million and two million barrels per day at its meeting tomorrow, the market will recover.

He added that by doing so, Opec will be able to boost prices to "a suitable level".

Recent production curbs implemented by Opec have so far not had much of an effect on the market, still Mr Nozari stated that Iran, the cartel's second-largest provider, has strictly adhered to guidelines.

He said: "The Islamic Republic of Iran has been producing as per Opec's approval and it is following its decisions."

Meanwhile, for as long as oil prices remain low, heating oil customers will continue to benefit.

A barrel of Brent crude currently stands at $45.25 (£29.64) and US, at $44.57 per barrel.

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