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Iran says OPEC has no obligation to cool prices

Iran says OPEC has no obligation to cool prices
Sun March 6, 2005 4:40 PM GMT+02:00

TEHRAN (Reuters) - OPEC does not feel it must cool scorching world oil prices by raising output at its March 16 meeting in Isfahan, Iran's OPEC governor said on Sunday.

In an interview with the semi-official Fars news agency, Hossein Kazempour Ardebili brought his country's stance into line with Venezuela and Qatar who have said the cartel has no need to raise production.

"Under conditions when global oil prices are higher and under conditions when OPEC has no tendency for extra production to reduce price levels, OPEC members welcome current prices and will continue the price (band) suspension," he said.

OPEC has suspended its long-outstripped $22 to $28 per barrel price basket target, but Kazempour said the time was not yet right to revise it to a higher level.

"What (price) range OPEC will decide upon in the current period is not on the agenda, and OPEC does not see any reason for a necessary agreement to decrease global oil prices," said the representative of the cartel's second-biggest producer.

Kazempour said he had no immediate complaint with his OPEC remarks as reported on Fars. However, he asked for time to reread the interview and said he would reply to Reuters shortly if he had anything to add or restate.

OPEC will meet in the central Iranian city of Isfahan on March 16, with most members saying world prices are now too high to slice back output.

NYMEX April crude futures ended up at $53.78 a barrel on Friday, rallying recently towards last year's record highs and prompting Nigeria to say OPEC should discuss whether to increase production.

The Organisation of the Petroleum Exporting Countries accounts for 40 percent of world oil exports.

Iran pumps around 4 million barrels each day and traditionally exports between 2.3 million and 2.7 million barrels.

Iran, with some 67 million people and an undiversified oil-dependant economy, is a traditional OPEC price hawk.


LINK: http://www.reuters.co.za/locales/c_newsArticle.jsp;:422bdd1f:23dc56f5c3e5caf?type=businessNews&l...