While terming the Saudi decision a "political move," Iranian Oil Minister Gholam-Hossein Nozari told Fars that a production increase would just lead to a further increase in reserves.

Fars reported that the increase followed a request by US President George W Bush during his visit to the kingdom on Friday, although the Saudi decision to increase its production by 3.3 per cent (300,000 barrels) was made on May 10.

Bush was in Saudi Arabia urging King Abdullah's government to step up production to ease the global energy crunch and record high oil and petrol prices that have squeezed US consumers.