Iran says OPEC unlikely to cut oil output

TEHERAN - OPEC members are likely to keep current oil output levels unchanged because of record high prices, Iran’s OPEC governor Hossein Kazempour Ardebili said on Monday.

By (Reuters)

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Published: Mon 24 Jul 2006, 8:50 PM

Last updated: Sat 4 Apr 2015, 1:07 PM

“Due to high oil prices, it is unlikely that OPEC members will reach an agreement on cutting production,” he was quoted as saying on the Oil Ministry Web site (www.shana.ir).

Kazempour, in a wide ranging article on OPEC, did not specify a timeframe for any consideration of possible cuts. OPEC holds its next meeting to set policy on Sept. 11.

Oil slipped below $74 a barrel on Monday, due to diplomatic efforts to resolve the conflict in the Middle East, but prices are still up about 21 percent this year.

US crude for September CLc1 shed 74 cents to stand at $73.69 a barrel by 1213 GMT.

Oil hit record levels above $78 this month on fears the fighting between Israel and Lebanese guerrilla group Hizbollah could spread to other countries in the oil-producing region.

OPEC, supplier of more than a third of the world’s oil, said this month that oil markets are well supplied and it had no influence over geopolitical tensions that are driving oil prices.

The price rally has also been fuelled by worries over oil supply from Nigeria, which has been reduced by militant attacks, and by a row over the nuclear plans of Iran, the Organisation of the Petroleum Exporting Countries’ second-largest producer.

Tehran has threatened to use its oil exports as a weapon to defend itself in a standoff with the West over Iran’s nuclear programme. Iran could face economic sanctions over Western suspicions it is seeking nuclear arms, a charge it denies.

OPEC President Edmund Daukoru, on a tour of some OPEC countries, is expected to visit Iran in coming days, aiming to sort out a long-running dispute over the post of OPEC secretary-general.



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