$60 Oil Can Stabilize Market
The director for international affairs of National Iranian Oil Company (NIOC) has said that $60 per barrel of oil could bring stability to the world energy markets.
"The price of $60 a barrel could bring stability to oil market and serve as a signal to investors to develop oil and gas fields. Low and fluctuating oil prices have sent unfavorable signals to investors," Saeed Khoshroo said.
"When the price of oil approaches $60, many investors may be able to invest in developing oil fields, but when the price varies between $40 and $45, the story would be different," he added.
"In my view, a price around $60 stabilizes the market because it is good enough to attract investment, particularly in the Middle East where there are many fields with low production cost which could be developed easily and meet market needs," said Khoshroo.
He said that production cost per barrel is around $10 in Iran, adding that the oil reserves to production(R/P) ratio in Iran could be a sign of attractiveness of Iran for investment.
Khoshroo said Iran's current oil production was around 3.9 mb/d, as set under Vienna Agreement, adding that the country's production capacity stands at 4 mb/d.
Rouhani Stresses IP Gas Line Benefits
Iran's President Hassan Rouhani has reiterated mutual benefits of a gas pipeline which would carry natural gas from Iran to neighboring Pakistan.
"I hope that the two sides would fulfill their obligations in this regard because this project would benefit both countries," he said during a meeting with Pakistani Prime Minister Shahid Khaqan Abbasi in New York where they attended the annual UN General Assembly gathering.
He said that Iran had fully respected its commitments by completing its own section of the pipeline as far as Iran-Pakistan border.
The Iranian president welcomed enhanced ties between the two neighbors, saying: "The two nations seek strong and perpetual ties between Iran and Pakistan."
Highlighting extensive potential between Iran and Pakistan for deepening cooperation, he said: "We are ready to supply energy to Pakistan and we also welcome attraction of foreign investment in this sector."
Rouhani said improved banking cooperation between the two countries would be key to economic cooperation and said Iranian and Pakistani banks need to open branch offices in respective countries.
For his part, the Pakistani prime minister described Iran as a very influential country with which Pakistan would seek better ties.
Meanwhile, Iran's Ambassador to Pakistan Mehdi Honardoust said completion of the Iran-Pakistan pipeline was essential for the realization of objectives of China-Pakistan economic corridor.
"Pakistan is one of Iran's top gas destinations," he said in an address to the Institute for Political Studies in Islamabad.
Honardoust said China-Pakistan Economic Corridor (CPEC)'s benefits would not be limited to bilateral business between the two countries, noting that the project must be seen as a factor that would change the future of the entire region.