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Iran says $55 oil price suitable, sees supply cut extension

Published 06/05/2017, 15:56
Updated 06/05/2017, 16:00
© Reuters. A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf
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DUBAI (Reuters) - Iran sees $55 per barrel as a suitable price for crude oil, and believes that OPEC and non-OPEC producers are likely to extend output curbs to support prices, Iranian Oil Minister Bijan Zanganeh was quoted as saying on Saturday.

"The price range of $55 per barrel would be suitable for oil," Zanganeh said, according to the oil ministry's news website SHANA.

Oil prices closed higher on Friday, rebounding from five-month lows, following positive U.S. jobs data and assurances by Saudi Arabia that Russia is ready to join OPEC in extending supply cuts to reduce a persistent glut.

Brent (LCOc1) futures gained 72 cents, or 1.5 percent, to settle at $49.10 a barrel.

Zanganeh said members of the Organization of the Petroleum Exporting Countries (OPEC) have signalled that they are leaning towards extending the supply cuts, SHANA reported.

"I think non-OPEC oil producers will also second (an) extension of the plan," said Zanganeh, speaking on the sidelines of an energy fair in Tehran.

OPEC and non-OPEC ministers are due to meet on May 25.

© Reuters. A gas flare on an oil production platform in the Soroush oil fields is seen alongside an Iranian flag in the Persian Gulf

They appear likely to extend their agreement to limit supplies beyond its June expiry to help clear a glut, three OPEC delegates said on Thursday, downplaying the chance of additional steps such as a bigger cut.

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