[Goldfisch]

Vol XXVII NO. 50 Sunday 9 May 2004

Iran 'won't oppose Opec plan to boost oil output'


TEHRAN:

Iran's Opec governor said yesterday he expected oil prices to remain high for the next three to four months but Iran would not oppose a production increase when the oil group meets next month.

"It seems we will not see a drop in oil prices in the next three or four months," Hossein Kazempour Ardebili told the reformist Sharq daily.

"The market is not facing a supply problem now. The increase in the reserves of oil consuming countries indicates that."

Kazempour said a move to increase production would be pandering to the United States, which has complained that high oil prices were hampering the world economy.

"If Opec decides to boost its production by one million barrels per day, such a decision must be viewed as political, to escape from the pressure of US propaganda," he said.

NymexJune crude settled at $39.93 on Friday.

Iranian Oil Minister Bijan Zanganeh said high-flying oil prices have nothing to do with Opec but are stoked by Middle East political tension and US refining problems.

"The oil price increase is not related to Opec," he said.

"Instability in the Middle East... and technical problems in US refineries are among the factors that have pushed prices," he added.

Zanganeh repeated his view that there were 3 to 3.5 million barrels of daily oversupply in the market buoying reserves. Last Saturday he said this level of oversupply could deflate oil prices suddenly.

Opec next meets in Beirut on June 3. Zanganeh also reiterated his view that he favoured oil prices at $28 per barrel, seeing no need to change the Opec price band.