Iran Says Mexico to Help If OPEC Tries to Manage Oil Market

08-Sep-2015

Mexico is willing to work with OPEC if the group tries to stabilize crude markets amid a global supply glut and slide in prices, Iran’s Oil Minister Bijan Namdar Zanganeh said after talks with Mexico’s labor secretary.

Mexico is the third-largest producer in the Western Hemisphere, according to BP Plc data. The Latin American nation isn’t a member of the Organization of Petroleum Exporting Countries, though it has cooperated with OPEC before by cutting output in efforts to buttress prices. The group supplies about 40 percent of the world’s oil.

“They expressed readiness to cooperate with OPEC should OPEC decide to enter market management,” Zanganeh said Tuesday after talks in the Iranian capital with Alfonso Navarrete Prida, according to state TV. Zanganeh didn’t elaborate on possible steps the producer group might take to manage the market.

Brent crude, a global benchmark, has dropped more than 50 percent in the last year and was at $48.62 a barrel in London at 11:08 a.m. local time. Venezuelan President Nicolas Maduro proposed that OPEC’s 12 members hold an extraordinary summit to halt the slide in prices and invite non-OPEC producers such as Russia to participate. Russia won’t work with the group to reduce global supplies even after prices dropped to their lowest since 2009, the Financial Times reported on Monday, citing OAO Rosneft Chief Executive Officer Igor Sechin. (by Hashem Kalantari and Bruce Stanley, Bloomberg)