Iran opposes any Saudi unilateral oil output hike
Thursday, 19 June 2008
TEHRAN, June 18 (AFP): Iran said Tuesday it would be opposed to any move by OPEC kingpin Saudi Arabia to raise its oil output without a consensus from fellow members of the oil cartel.
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
Another report from Singapore adds: World oil prices fell in Asian trade today ahead of an expected output increase by key producer Saudi Arabia, dealers said.
New York's main oil futures contract, light sweet crude for July delivery, dropped 65 cents to 133.36 dollars per barrel.
The benchmark contract closed at 134.01 Tuesday at the New York Mercantile Exchange.
London's Brent North Sea crude for August delivery fell 72 cents to 133.00 dollars.
Ken Hasegawa, a manager at the energy department of Newedge Japan brokerage in Tokyo, said that prices were easing on profit- taking ahead of the Sunday meeting organised by Saudi Arabia to discuss the market.
"Prices are expected to remain rangebound until it breaks 130," he said.
UN Secretary General Ban Ki-Moon announced Sunday that Saudi Arabia had told him it would increase its oil output by 200,000 barrels a day in July.
The remarks sparked speculation about the prospects of an easing of tight crude oil supplies.
"We can expect some surprises at the meeting but it may have no immediate effect to cool down the market as it would still be in the uptrend," Hasegawa said.
Iran said it would oppose any move by Saudi Arabia, the largest oil producer in the Organisation of the Petroleum Exporting Countries, to raise its output without a consensus from fellow members of the oil cartel.
"If Saudi Arabia takes a measure to unilaterally increase (oil) output, it is a wrong move," Mohammad Ali Khatibi, Iran's new representative to OPEC, was quoted as saying by the state television website.
UN chief Ban Ki-moon announced Sunday that Saudi Arabia had told him it would increase its oil output by a further 200,000 barrels a day in July, although it was not clear if Khatibi was reacting to these comments.
Saudi Arabia is also organising talks among major oil producers and consumers in the Red Sea city of Jeddah next week to discuss the current sky-rocketing prices.
Iran is OPEC's number two producer, behind the Saudis, and has consistently argued that the high oil price has nothing to do with market fundamentals and OPEC's output should not be increased.
"Any increase in production should be approved in the meeting of the organisation's ministers," Khatibi stressed.
Iran's OPEC representative also said there was no shortage in the oil market: "Oil producers are all agreed that the oil market is saturated," he said.
"Evidence shows that consumers will discuss the increase of oil production more than other issues in this (Jeddah) meeting. This is while the producers believe that there is no shortage in the market," he said.
The National Iranian Oil Company's director for international affairs, Hojatollah Ghanimifar, said any boost to output would have little impact on world prices.
Another report from Singapore adds: World oil prices fell in Asian trade today ahead of an expected output increase by key producer Saudi Arabia, dealers said.
New York's main oil futures contract, light sweet crude for July delivery, dropped 65 cents to 133.36 dollars per barrel.
The benchmark contract closed at 134.01 Tuesday at the New York Mercantile Exchange.
London's Brent North Sea crude for August delivery fell 72 cents to 133.00 dollars.
Ken Hasegawa, a manager at the energy department of Newedge Japan brokerage in Tokyo, said that prices were easing on profit- taking ahead of the Sunday meeting organised by Saudi Arabia to discuss the market.
"Prices are expected to remain rangebound until it breaks 130," he said.
UN Secretary General Ban Ki-Moon announced Sunday that Saudi Arabia had told him it would increase its oil output by 200,000 barrels a day in July.
The remarks sparked speculation about the prospects of an easing of tight crude oil supplies.
"We can expect some surprises at the meeting but it may have no immediate effect to cool down the market as it would still be in the uptrend," Hasegawa said.
Iran said it would oppose any move by Saudi Arabia, the largest oil producer in the Organisation of the Petroleum Exporting Countries, to raise its output without a consensus from fellow members of the oil cartel.