Iran reviews proposal to cut oil output

TEHRAN (Reuters) – Iranian President Mahmoud Ahmadinejad said a proposal for OPEC’s second biggest producer to cut crude output was under review by experts, Iran’s semi-official Fars New Agency reported on Tuesday.

Oil Minister Gholamhossein Nozari said earlier on Tuesday the world’s fourth-largest oil exporter was reviewing how much oil it pumps but had taken no decision on any changes.


“There has been such a proposal and it is under expert review,” Fars quoted Ahmadinejad as saying when asked about the possibility of reducing output.

U.S. oil futures hit a record $126.98 a barrel on Tuesday after Ahmadinejad’s comment added momentum to a rally on tight fuel supplies.

Neither Ahmadinejad nor Nozari said why Iran was reviewing output, which hit 4.203 million barrels per day (bpd) in March, the highest level since its 1979 Islamic revolution.

“So far we have not decided to decrease output. We are reviewing the issue. The result of this review could lead to an increase or decrease of production,” Nozari was quoted as saying by the Oil Ministry’s website Shana.

“The amount of production and oil supply will be in proportion to the market’s demand,” he said.

Reuters