Dubai - Oversupply is mainly to blame for fallen crude oil prices although political factors have also had an effect, Iran's official IRNA news agency on Friday quoted Iranian Oil Minister Bijan Zanganeh as saying.
“Surplus oil supply in the market has been the main cause of price declines in recent months,” he told national television, according to IRNA.
“There is no doubt about political factors having an effect to sustain the situation; but at what percent, one cannot say for sure,” he said.
He said there were 2 million barrels per day of excess oil supply in the market, and “this is expected to endure for the first six months of 2015”, IRNA said.
Benchmark Brent crude futures were up on Friday yet remain roughly 50 percent below their levels last June amid rising global inventories and steady Opec supply.
Reuters