COVID-19 not affecting Iran oil, gas production

"We are producing like before. Of course, in the transportation sector inside the cities we have witnessed a reduction in consumption,” Zanganeh said on Wednesday.

Zanganeh, who is in Vienna to attend a meeting of the Organization of Petroleum Exporting Countries (OPEC), said there is an oversupply in the crude oil market, adding that OPEC and non-OPEC producers need to discuss how to ensure market balance.

“There is no doubt about the supply and demand imbalance in the oil market meaning there is more supply than there is demand.”

“I believe we have an oversupply in this situation because the situation is very sensitive and after the coronavirus situation we have oversupply in the market and it’s necessary that OPEC and non-OPEC do something for the balance in the market,” he added.

According to the study of OPEC secretariat, he said, at least it’s necessary to reduce about half a million barrels.

“It’s a recommendation of JTC for reduction of around half a million barrels,” Zanganeh said.

“We must see. Expert figures do not work here. Politics works here.”

Asked about Russia’s stance on production cuts he said, “I believe that the Russians would resist until the last moment not to lower their output.”

Message end/