Opec: Iran blames falling oil price on 'political plot'

Iran's oil minister has said that a "political conspiracy" is to blame for the dramatic slump in the price of crude in remarks that could signal that the Islamic Republic will try to exert pressure on the Organisation of Petroleum Exporting Countries (Opec) to again consider cutting output.

Bijan Zanganeh told the country's state petroleum news agency: "The prolongation of the downward trend of the oil price in world markets is a political conspiracy going to extremes."

Iran along with Venezuela tried to convince Opec to reduce its production ceiling from 30m barrels per day (bpd) at the cartel's last meeting in Vienna at the end of November. However, the proposal was shot down by Saudi Arabia and a clutch of Gulf Arab producer who appear determined to provoke a price war with Russia and US shale oil drillers.

Brent crude - a global pricing benchmark - was up for a second day on Thursday, gaining almost 2pc to $62.31 per barrel in early morning trading in London. However the benchmark has lost about 45p of its value since June amid concerns over global oversupply and weakening demand growth.

Falling prices are crippling the Russia economy, threatening to plunge the country deep into recession and forcing the country's central bank to intervene in order to defend the rouble. Russian President Vladimir Putin has placed Moscow at loggerheads with Saudi Arabia and Gulf states within Opec due to his close ties to the regime of Syria's Bashar Assad.

Mr Zanganeh's remarks will lend support to the theory that the real target of Saudi Arabia and its allies such as the United Arab Emirates is the Kremlin. Iran has also placed itself again at odds with its Gulf neighbours over Syria and its attempts to broker a nuclear deal with the West.

Iran's economy has been crippled by years of sanctions, which have led to hyper-inflation and undermined its oil industry.

Some influential figures on the fringes of Opec have suggested that the group's key producers should meet with major non-Opec producers to agree cuts in production that will address a 2m bpd oversupply of crude that has built up in the market. Former Opec president and Qatari energy minister Abdullah bin Hamad al-Attiyah told the Telegraph last week that Saudi Arabia, Russia, Norway and Mexico should meet to discuss cuts.