Politics, Strong Dollar Behind Falling Oil Prices: Expert

Tehran, Oct 23, IRNA - It is very difficult to predict the future of oil prices until November 27 when OPEC members come together in Vienna to review oil market developments, Iran’s former representative to OPEC Fereydoon Barkashli said. In an interview with shana.ir, he said not fundamentals but politics and a strong dollar are the two main reasons behind falling oil prices. “While fundamentals including demand and supply are sound and stable, falling oil prices is the result of the role politics play in the market” senior expert of IIES told Shana. He continued: 'After West slapped sanctions against Russia, the country decided to offer discount to its customers and so played a key role in falling oil prices and then Saudi Arabia and other countries decided to follow suit.' According to Barkashli, a strong dollar and its rising value against euro and other currencies was another important factor affecting falling oil prices. On predicting the future of oil prices, he said it is difficult to predict developments of oil market through OPEC’s ordinary meeting on November 27. Oil prices have witnessed a 30 percent decline since June 2014./end