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Iran's Zanganeh says hard to predict oil prices as demand unclear

Iranian Oil Minister Bijan Zanganeh talks to reporters during the 15th International Energy Forum Ministerial (IEF15) in Algiers, Algeria September 27, 2016 [Ramzi Boudina / Reuters]
Iranian Oil Minister Bijan Zanganeh talks to reporters during the 15th International Energy Forum Ministerial (IEF15) in Algiers, Algeria 27 September 2016 [Ramzi Boudina / Reuters]

Iran’s oil minister said on Monday it was difficult to forecast crude prices amid uncertainties over prospects for demand, Reuters reported quoting Iranian state radio.

“No one can predict crude prices and now the demand is vague,” Bijan Zanganeh told state radio.

Oil prices rose on Monday, reversing earlier losses, as countries around the world continued to ease lockdown measures imposed to combat the coronavirus pandemic.

Amid quiet trading, with financial centres Singapore, London and New York all closed for holidays, Brent was up 11 cents, or 0.3%, at $35.24 a barrel by 0855 GMT. US oil had gained 36 cents, or 1.1%, at $33.61 a barrel.

Zanganeh said:

It is not clear when the world economy will recover and when the demand will return to normal. The world’s largest economies are growing negatively, reducing demand for petroleum products and, consequently, crude oil.

Zanganeh also said Turkey had “not welcomed” Iran’s offer to repair a natural gas pipeline inside Turkey, which carries around 10 billion cubic meters of Iranian gas to Turkey annually. The pipeline was damaged by a blast in March and halted Tehran’s natural gas flow to Turkey.

“Because of the explosion our gas exports to this country have been cut off. Although it takes not more than a few days to repair the pipeline, the Turkish side has not yet repaired it,” Zanganeh said.

Read: Despite US threats, Iranian oil tanker arrives safely in Venezuela

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