The Iranian oil minister also said there currently is an oversupply of oil in the market by about 400,000 barrels per day, Fars News Agency reported Sunday.

"An oil price of less than $100 is unsuitable for anyone, either for producers or for consumers," Nozari told reporters at a gas export conference in Tehran Saturday.

"Unfortunately despite decrease in oil prices we have not seen any signs of a decrease in the costs" of oil production, he added.

Nozari blamed price fluctuations on the global credit crunch.

"I think the main reason for the volatility is because of international economic crisis," Nozari said.

Oil prices have plummeted from record highs above $147 a barrel in July. Contracts for November delivery closed Friday at $93.88 on the New York Mercantile Exchange. Back in 1999, oil was at $16 a barrel.