Speaking to Shana, Khatibi cited Total chief executive remarks, as a private oil company which is involved in investment in many oil projects, on falling oil prices quoted him as saying falling prices below 100 dollars per barrel puts investment in oil industry in doubt.  

‘Even most oil consuming countries are worried about putting on hold investments in oil industry because in their view resumption of investments in oil industry is not an easy task and demands reestablishment of stability in world oil markets’, Khatibi said.

On oil demand in second half of 2012, Khatibi noted: Regarding rising stockpiles, it is expected oil consuming countries to start withdrawing oil from their reserves during the second half of the year which will have a negative impact on oil demand if world economic situation to be worsened.

He went on to say that some regional crises such as economic crisis in Europe will be followed by falling demand for oil which could have an impact on oil prices unless OPEC members decide to adjust oil supply accordingly.

‘If crisis in Europe and the U.S spill over to other parts of the world and for example to Asia, oil demand will fall and that is why OPEC should produce oil based on oil demand otherwise oil market will face surplus and the level of oil reserves in consuming countries will rise which in turn will have an impact on oil prices.’

These days, world oil markets are facing surplus and that is why OPEC should adjust its production according to real demand in the market, Khatibi told Shana.

Despite tumbling oil prices, Saudi Arabia has continued overproduction unilaterally which has recently led to unhappiness by Russia.

OPEC members in their 161st meeting, which was held in Vienna on 14th June, decided to keep oil production unchanged at 30 million barrels per day.