Oil market fundamentals do not explain the sharp fall in crude prices witnessed in recent weeks, a senior Iranian oil official said Wednesday.
"Under the current conditions, fundamental factors of the oil market don't have that much influence on oil prices to cause a $10 price fall," Iran's OPEC governor, Mohammad Ali Khatibi, was quoted saying by the official IRNA news agency.
Khatibi reiterated his comments last week that OPEC was ready to consult over possible action if oil prices continue to fall.
"If oil prices reach a worrisome level and the [OPEC] members feel worry, they are likely to consult and hold an emergency meeting," Khatibi said.
"OPEC members have not determined any [target] price level and they have different opinions. Some consider $80 to $90/barrel suitable and some say $100/barrel of oil is good," he said, when asked what prices would be worrying for the group.
Khatibi said initial predictions for an upward trend in oil prices in the fourth quarter of this year had been reversed.
"The perspective for this period was positive because everybody thought the economic situation would improve after the compromise between US Democrats and Republicans. But the situation is reverse for now," Khatibi said.
"The impact of the economic recession and oil demand decrease on the oil price takes time. But we are witnessing quick and immediate falling prices in today's oil market," he said.
Khatibi also pointed to "irrational and psychological relations" between stock markets and oil prices.
