Date: 01 Mar 2000
Time: 13:22:16
Remote Name: 156.29.145.175
The Associated Press Tuesday, Feb. 29, 2000; 10:48 p.m. EST
TEHRAN, Iran –– Iran's oil minister said Tuesday that the Organization of Petroleum Exporting Countries will not boost production at least until July, the official Islamic Republic News Agency reported.
It quoted the minister, Bijan Namdar Zanganeh, as saying that there will be no boost in the first quarter of 2000, but OPEC will study raising the production ceiling during the third quarter, or the July-September period.
The statement appeared to be in response to U.S. efforts to get major oil producing nations to raise output to bring prices down from nine-year highs of about $30 a barrel.
Zanganeh was quoted as saying crude's base price is intolerable for both producers and the consumers, and that the balance in supply and demand should be taken into account when OPEC meets March 27 in Vienna. IRNA did not elaborate.
With oil and gas projected to account for nearly half of the government's revenues in 2000-2001, Iran is keen to keep prices high.
Last week, U.S. Energy Secretary Bill Richardson met with top Saudi Arabian officials to discuss lowering the prices. Following the meeting, Saudi Arabia said it will continue to review oil supply and demand levels to ensure market stability and prevent oil price volatility, but gave no firm commitment to raise production.
Saudi Arabia is scheduled to meet on Thursday with Mexico and Venezuela to discuss whether to increase production. Whatever decision they reach is expected to influence the OPEC meeting.
© Copyright 2000 The Associated Press