TEHRAN - A professor of international business blames political division among OPEC members for falling oil prices, noting such a division is unprecedented in the history of the oil cartel.

“OPEC member countries are more divided politically than ever before in OPEC history,” Hossein Askari tells the Tehran Times in an exclusive interview.
Oil prices have fallen almost 16% in December.
The market is already oversupplied. Many OPEC and non-OPEC members criticize Saudi Arabia for overproduction. According to the OPEC monthly oil market report, the country pumped 10.130 million barrels per day in November.
Some analysts believe the overproduction by the Riyadh government is primarily intended to squeeze Iran financially.
“Iran and Saudi Arabia do not see eye-to-eye on anything,” Askari says.
Following is the full text of the interview:
Q: Some argue that a further fall in oil prices is due to a failure by OPEC to reduce oil production. Do you agree with such a view?
A: Sure, if OPEC had agreed to significant cutbacks in production AND stuck to it (that is no cheating), then prices would have stabilized and gone up. But today there is such a glut on the market and available excess capacity and forecast of slow global economic recovery that the cutbacks would have to be SIGNIFICANT. OPEC cannot even reach agreement on small cutbacks, let alone big cutbacks. And OPEC members have always cheated.
Q: Why OPEC members in their December 4 session failed to reach an agreement on oil production?
A: Two reasons. A big Glut on the market (slow economic growth and increasing output outside of OPEC). Second, OPEC member countries are more divided politically than ever before in OPEC history. Iran and Saudi Arabia do not see eye-to-eye on anything.
Q: The Goldman Sachs bank predicts that the oil price may go down further and fall to 20 dollars a barrel. Do you think that this will be happen?
A: Sure, anything could happen. A couple of years ago someone at Goldman Sachs called me about oil price outlook. I said in the $40-60 range for the next 5 years. He thought I was mad. Now they have become even more pessimistic than me! I don't think down to $20 but definitely down to $32-33. It is for this reason I have always advocated that OPEC countries should save, invest proceeds abroad and use revenues from these investment when oil prices decline. But no one listens until they are hurting. But then it is late.