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Iranian Petroleum Minister Calls for Additional Measures to Stabilise Oil Market

Sputnik News

08:18 GMT 22.04.2020

TEHRAN (Sputnik) - Iranian Petroleum Minister Bijan Zangeneh called on Wednesday for additional measures for stabilizing the oil market, qualifying the current situation as unprecedented.

"The situation in the oil industry is unprecedented due to the coronavirus that has resulted in a significant decrease in oil products consumption, gasoline use by private vehicles has plunged, jet fuel use has decreased as well. The demand has faced a dramatic drop," Zangeneh said, as aired by IRINN broadcaster, adding that the "oil prices war" is another reason behind the crisis.

"It is necessary to reduce oil production, to be serious about. If the need emerges, additional measures by OPEC+ will be necessary, especially by producers that have not yet undertaken any obligations," Zangeneh added.

On Tuesday, June futures for Brent crude oil slumped 26.95 percent to $18.68 per barrel, earlier falling to $17.52 per barrel, the lowest price since December 2001. Brent's decline follows WTI plummeting into negative territory on Monday for the first time in their history.

Earlier this month, Russia, Saudi Arabia and other major petroleum producers signed a historic deal to cut oil output by a whopping 9.7 million barrels per day over the next two months in a bid to end the oil glut which sent prices falling off a cliff in March.

© Sputnik

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