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OPEC output cut was enough, says IranAFP
Iranian Oil Minister Kazem Vaziri-HamanehAFP
TEHRAN
Petroleumworld.com 10 31 06
Iranian Oil Minister Kazem Vaziri-Hamaneh said Monday a new reduction in crude oil production by OPEC was not necessary after the cartel's decision to cut output by 1.2 million barrels a day from November 1.
"The effects of the lowering of production are beginning to make themselves felt, and the price of oil will rise by about 1.50 dollars a barrel," the student news agency ISNA quoted Vaziri-Hamaneh as saying.
"We hope that all of OPEC's member states will apply the reduction and that the problem will be solved as soon as possible," he added.
He also said that "the price of oil should rise to 60 dollars a barrel".
"We are reducing our output by 176,000 barrels a day from our current production level of 4.2 million bpd" -- a record daily figure for Iran -- Vaziri-Hamaneh said.
The Organisation of Petroleum Exporting Countries decided on October 20 to slash its oil production by 1.2 million bpd to 26.3 million bpd from the start of November, attributing the move to an over-supplied market.
OPEC decided to reduce real output and not just official quotas, which would have been an accounting device, and the reduction was 200,000 bpd more than the international market was expecting.
Cartel member Venezuela wants production reduced even further, and such a move
has not been ruled out by Algeria.
The current price of oil is just below 60 dollars a barrel.
AFP 30 2056 GMT 10 06
Copyright© 2006 AFP. All Rights Reserved.
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