Iran Wary of Oil ‘Shock Therapy’ as OPEC Vies for Market
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The “shock therapy” of a steep drop in crude prices, which have fallen to a five-year low, is no solution for OPEC’s loss of market share to U.S. shale producers, Iran’s Oil Minister Bijan Namdar Zanganeh said.
U.S. benchmark West Texas Intermediate crude declined 10 percent after the Organization of Petroleum Exporting Countries decided on Nov. 27 to keep its production target unchanged at 30 million barrels a day. Prices at this lower level are no guarantee of a significant reduction in U.S. shale output, Zanganeh said in an interview in Tehran on Nov. 28, after arriving from the OPEC meeting in Vienna.