Iran calls for oil production cuts

TEHRAN, Nov. 24 (UPI) -- Iran said Monday it would call for additional production cuts to control prices during the next meeting of the Organization of Petroleum Exporting Countries.

The OPEC oil cartel in October agreed to a 1.5 million-barrel-per-day production cut in an effort to stem the precipitous decline in world crude prices, though markets continued to slide from their July highs of around $147 per barrel.

Mohammad Ali Khatibi, the Iranian OPEC governor, said he would call for additional cuts at the next OPEC meeting Saturday in Cairo, adding the October cuts failed to influence the market, the Platts news agency said.

"The first OPEC step to cut the supply was made in October, but the market's features show this measure could not prevent oil prices from falling," he said. "Thus, it is felt that in order to stop this trend, it is necessary that OPEC cuts its production once again."

Khatibi said that despite the global economy inching toward recession, investments in energy infrastructure should continue in an effort to avoid huge spikes in the price of oil.

"The world needs more oil, and if investments are not made like before, we will probably witness an oil price of $200 per barrel in the medium term," he said, echoing a common sentiment from the Iranians.