Iran and Venezuela vow to ‘neutralise’ oil price problem

Iran’s President Hassan Rouhani, flanked by Venezuelan counterpart Nicolas Maduro, vowed Saturday to “neutralise” the threat posed to both countries by plummeting oil prices, in a barely veiled broadside at Saudi Arabia. OPEC members Iran and Venezuela are reeling from a slide in the cost of crude to around $50 per barrel from $100 just six months ago, a precipitous fall that is straining their budgets. Losses accelerated after the Organisation of Petroleum Exporting Countries cartel, of which Iran and Venezuela are founders, chose late last year not to cut output despite lower prices and oversupply.

Without doubt, cooperation of countries that are on the same line in OPEC can neutralise the plans of some powers who are against OPEC, stabilising a reasonable price for oil in 2015.

Iran’s President Hassan Rouhani

Maduro arrived in Tehran late Friday, accompanied by his ministers for oil, foreign affairs, finance and industry, plus Venezuela’s Central Bank chief, on what Iranian state media said would be a 24-hour trip. Iran and Venezuela pledged to reach agreements during Maduro’s trip that would “expand trade and investment, export of technical and engineering services and collaboration in pharmaceuticals.”

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