Oil may rise to $55 if all producers cooperate: Iran

DUBAI: Iranian Oil Minister Bijan Zanganeh expressed optimism on Saturday about an upcoming OPEC meeting and said crude prices could jump to $55 a barrel if an agreement is reached and non-OPEC producers cooperate.

"We are receiving positive signals that increase the likelihood of agreement at the meeting and I´m optimistic about the situation," Zanganeh told state television by telephone, after meeting OPEC Secretary-General Mohammed Barkindo in Tehran ahead of the Nov. 30 meeting.

"I think if we can reach an agreement, God willing, the price would rapidly reach above $50 per barrel . If non-OPEC (producers) also cooperate, I don´t think $55 per barrel would be out of reach.

Asked about an OPEC proposal for an output cap of 3.92 million barrels per day for Iran, Zanganeh said: "We have not reached any agreement. We have expressed our views and we look forward to explaining them."

The Organization of the Petroleum Exporting Countries is moving closer towards finalising its first deal since 2008 to limit oil output, with most members prepared to offer Iran significant flexibility on production volumes.

Iran has been the main stumbling block for such a deal because Tehran wants exemptions as it tries to regain oil market share after the easing of Western sanctions in January.   Oil prices settled higher on Friday, closing out a strong week that saw crude buoyed by

growing expectations that OPEC will find a way to cap production at the end of the month.

The flexibility shown by others suggests OPEC members may be coming nearer to consensus as the Nov. 30 meeting approaches.  

Crude has been moving up and down based on statements by OPEC members ahead of its Nov. 30 meeting, said James L. Williams, energy economist at WTRG Economics in London, Arkansas.  "It kind of depends on which side of the bed the OPEC ministers wake up," he said of oil prices.

"People keep digesting and re-digesting the news."  Williams said prices could fall below $40 if OPEC does not reach a deal on Nov. 30.Stephen Brennock of oil brokerage PVM said there were still obstacles for OPEC to overcome.

"Iranian and Iraqi intransigence to the proposed output cuts remains in full force while competitive pressures among OPEC members was highlighted by news that Iran displaced Saudi Arabia as the top oil supplier to India," he said.