Iran says OPEC will not boost output

Iran’s oil minister rejected on Saturday any idea of OPEC raising production, saying it would fail to ease record prices as the market was already “saturated” with oil.

Gholamhossein Nozari also dismissed as a “political move” Saudi Arabia’s announcement on Friday of a modest hike in output after an appeal from visiting U.S. President George W. Bush.
“No, the market is saturated with oil and a hike in production does not have an impact on the price,” Nozari told reporters when asked whether the Organisation of Petroleum Exporting Countries (OPEC) would increase production.

OPEC’s smallest producer, Ecuador, said on Friday that members should consider raising output to stem the oil rally because high prices are hurting the poor.

But Iran, OPEC’s second-largest producer after Saudi Arabia and a price hawk, says the market is well-supplied with oil and blames the price rise on a weak U.S. dollar, speculation and other factors outside the control of the 13-member cartel.

Reuters