Iran says oil price too low at 115 dollars a barrel

TEHRAN, April 19, 2008 (AFP) – Even at 115 dollars a barrel, oil is priced too low, Iranian President Mahmoud Ahmadinejad said in comments published on Saturday adding that the commodity “should find its real value”. “Oil at 115 dollars a barrel in today’s market is a deceiving figure, oil is a strategic commodity and should find its real value,” the state broadcaster’s website quoted Ahmadinejad as saying on Friday.

New York’s benchmark contract, light sweet crude for delivery in May, surged 1.83 dollars to a record close of 116.69 dollars a barrel on Friday. It had earlier hit an intra-day all-time peak of 117 dollars.

Iranian Oil Minister Gholam Hossein Nozari, whose country is OPEC’s number-two oil producer and exporter, on Wednesday rejected calls from oil consuming countries for the cartel to take action to bring down prices.

“The oil price has reached 114 dollars a barrel. When the price is suitable and supply is higher than demand, this shows the reason is somewhere else and we should deal with this other reason,” he said.

The Organisation of Petroleum Exporting Countries — which produces 40 percent of the world’s oil — has refused to raise its daily output quota which is currently fixed