Don't want it getting to cheap, hey???


OPEC may delay production increase - Iran oil minister
AFX


TEHRAN (AFX-ASIA) - Iranian Oil Minister Bijan Namdar Zanganeh said

Saturday that current oil prices were 'good' and that OPEC could consider

delaying a scheduled production increase when it meets later this month.

'I think that at the moment the prices are good. Many people are happy

about the current prices,' Zanganeh told reporters.

'If at the end of this month we feel there is no need for extra oil, we can

postpone the decision on the extra 500,000 barrels per day. It depends on the

market situation and the prices,' he said.

'We can make a new decision about if we want to suspend the August

increase, otherwise the 500,000 bpd increase does not need to be approved

again,' he added.

'We have already said we want to have a balanced market situation.'

Faced with record highs on world markets, OPEC had announced June 3 it

would raise production quotas by 2 mln bpd on July 1, and by another

500,000 bpd on August 1.

But signs of wavering on the promise from key cartel producers, including

Saudi Arabia, have kept prices buoyant.

Zanganeh's remarks followed similar comments on Wednesday from Saudi Oil

Minister Ali al-Nuaimi, who said current prices were 'fair' and that there was

'no reason to take a measure to reduce or increase production' when OPEC meets

on July 21.

Iran is the Organisation of Petroleum Exporting Countries' number two

exporter after Saudi Arabia.

The minister was also asked if Iran would be asking OPEC for an increase in

its daily production quota.

'No, we have not made such a request,' he said. 'But there is general

discussion going on in OPEC to work out a new quota system. These discussions

will take a long time. It needs a consensus among all members.'

He also predicted that by the end of the current Iranian year in March

2005, Iranian production capacity would reach 4.3 mln bpd.

Iran's current quota is 3.744 mln bpd, and its production and capacity

are around 3.9 mln bpd.