Improved economic conditions in the U.S. will be positive for the energy market because it will boost crude oil demand and should be a priority for any new administration in Washington, Iran's Organization of Petroleum Exporting Countries Governor said.
"I think it should be a priority for both groups (republicans and democrats) to improve their economy first," Mohammad Ali Khatibi told Dow Jones Newswires in a phone interview late Monday.
"If they can help bring their economy out of the recession, it is good for the people and also good for the energy market, because there will be growth in the energy demand side," Khatibi said.
Crude prices have slumped more than 50% to just above $60 a barrel from highs of $147 in July amid deepening concerns over falling energy demand as the unfolding global financial crisis is pushing major economies including the U.S. into recession.
OPEC on Oct. 24 at an extraordinary meeting in Vienna decided to cut output by 1.5 million barrels a day to stem the decline in prices, which have since remained in the $60-70 a barrel range.
Nymex crude oil futures for December delivery were trading down 16 cents at $63.75 a barrel on Globex at 0630 GMT Tuesday.
Khatibi said further output cuts may be needed to balance an oil market that still appears oversupplied.
"The (oil) stock level is increasing. This is a signal to the market that the market is still oversupplied," he said.
If OPEC's latest production cut won't achieve a balance in the market, the group "should review the result of the first step and the reaction of the market. Then this is up to the ministers, whether to decide to continue this situation or take another step," Khatibi added.