Venezuela president in Iran to talk over falling oil prices

Maduro was welcomed in Tehran’s international Mehrabad Airport by Iran’s Minister of Industries, Mines and Trade Mohammad Reza Nematzadeh as well as Islmaic Republic’s deputy foreign minister, Majid Takht Ravanchi.

Iranian IRINN TV channel has reported live that the president of Islamic Republic, Hassan Rouhani welcomed Maduro in Saadabad Palace in Tehran.

Maduro’s visit to Iran is scheduled to last one day. Iran is the third country that Maduro has visited, after Russia and China.

Maduro has started an international tour that will bring him to visit the member nations of Organization of Petroleum Exporting Countries(OPEC), to address the issue of falling oil prices and strengthen cooperation.

Venezuela and Iran need the oil price to be above $۱۰۰ to balance their budgets, according to estimates from the IMF(International Monetary Fund) and other analysts, higher than the Gulf members who can tolerate lower oil revenues for years.

The fall in the global crude oil price from almost $۱۱۰ / barrel to below $۵۰ / barrel in recent months has imposed serious pressure on the mentioned countries’ economy.

The OPEC oil basket price was $۱۰۷.۸۹ in mid - June, but has been in dramatic decline, especially after October. The price stood at $۴۵.۷۴ a barrel on Jan. ۸.

OPEC members held a meeting in ministerial level November ۲۷,۲۰۱۴ to evaluate the global oil market and the falling trend of the oil price. Iran and Venezuela wanted to lower the Cartel’s oil output and set a new ceiling level below the current ۳۰ mbpd level.

OPEC says that the demand for the organization’s crude is estimated at ۲۹.۴ mbpd in ۲۰۱۴. In ۲۰۱۵, the figure is estimated to reach ۲۸.۹ mbpd.