Ahmadinejad: OPEC being pressured

Ahead of trip to Bahrain, Iran's president says that oil prices are below real value.

ahamdinejad the boss (photo credit: AP)
ahamdinejad the boss
(photo credit: AP)
Iran's president said Saturday that the Organization of Petroleum Exporting Countries is "under heavy economic and political pressures" and that the oil prices are below its real value, state-run-news agency reported. Mahmoud Ahmadinejad made his remarks prior to his trip to Bahrain and Saudi Arabia where he is due to attend the OPEC summit. "OPEC is subjected to heavy economic and political pressures and that is why the (price of) fossil energy isn't at the position it deserves in the world until now," he said. "The pressure on the fossil energy market is not without a reason," IRNA quoted Ahmadinejad as saying." He didn't elaborate on the kind of pressure the OPEC is facing. "The summit will discuss which currency will be used in oil exports," he added. Oil is priced in dollars on the world market, and its depreciation has concerned oil producers because it has contributed to rising crude prices and has eroded the value of their dollar reserves. Cartel officials have resisted pressure to increase oil production to ease prices. Iran and Venezuela have proposed trading oil in a basket of currencies to replace the historic link to the dollar, but they have been unable to generate enough support from fellow OPEC members. Both nations have antagonistic relationships with the US, suggesting their proposals may have a political motivation as well.