Addressing the reporters, the official said, "It seems that the price of oil will firmly settle at $54 to $55/b in the market."
Oil rose to an 18-month high on Monday after OPEC and some of its rivals reached their first deal since 2001 to jointly reduce output to tackle global oversupply, though prices slipped late in the day.
On Saturday, producers from outside the Organization of the Petroleum Exporting Countries, led by Russia, agreed to reduce output by 558,000 barrels per day, short of the target of 600,000 bpd but still the largest non-OPEC contribution ever.
That followed OPEC's Nov. 30 deal to cut output by 1.2 million bpd for six months from Jan. 1. Top exporter Saudi Arabia will cut around 486,000 bpd to reduce the supply glut that has dogged markets for two years.
Mr. Zangeneh said: "All indicators suggest that the prices will rally in the oil market. The prices are soaring while not even a barrel of supply has been reduced from the market and all the plans for production cuts will be enforces no sooner than January."
He expressed optimism about the future of the oil market, saying what matters more than numbers is the deal struck by OPEC and non-OPEC oil suppliers for rebalancing supply and demand in the market.
