Javad Yarjani, head of OPEC affairs at the Oil Ministry, was also quoted as saying that the third quarter of 2007 could see a strong rise in oil supply from non-OPEC states, putting pressure on demand for OPEC crude.

‘From OPEC’s point of view, the situation of the global oil market in this period of time (Q3 2007) will be worrisome and setting conditions for balancing the market in this situation is the main duty of this organisation,’ he said.

The Organisation of Petroleum Exporting Countries has agreed to cut 1.2 million barrels per day (bpd) from the group’s actual output from November to shore up prices which have tumbled about $20 a barrel from this year’s peak, partly due to rising crude stocks.

‘If a cut in OPEC oil affects the global oil stocks and the increasing trend of these stocks in the recent months stops, it can be hoped that this decision by OPEC was fruitful,’ he said.

‘Otherwise OPEC members will take another appropriate decision’ at their meeting in Abuja, capital of Nigeria, in December, he said.

Iran’s share of the OPEC cut is 176,000 bpd. A senior Iranian oil official, who asked not to be named, told Reuters last week that Iran had informed its customers it would be cutting supply from November.

‘OPEC studies show most OPEC members have informed crude oil buyers that they will decrease their exports,’ Yarjani said.

Iran’s OPEC quota is 4.11 million bpd but its actual output in September, according to an OPEC report, was 3.875 million bpd. Iranian officials have said the country is able to sustain production of 4.2 million bpd.

Yarjani said changes in capacity and production by OPEC states meant quotas would need to be reviewed in the future.

‘A change in the production condition of OPEC members has made it necessary to reconsider the quotas in this organisation,’ he said.