The Republic of Iran will boost its oil production by 104,000 barrels per day (bpd).
"This increase is in line with Iran's share in the agreed upon OPEC increase of 708,000 bpd due to begin on July 1 and the additional 104,000 barrels will be exported," Zangeneh, the nation's Oil Minister said.
On June 21, OPEC announced a unanimous agreement to boost production on July 1 to 25.4 million bpd, an increment of 700,000 bpd, the Individual reported.
As OPEC's second leading producer, Iran currently produces 3.7 million bpd, of which, 2.4 million are exported.
Zangeneh recently remarked that Tehran considers the explosion in the price of oil to be driven "by the needs of the American market," and not related "in any way to insufficient production."
Many Mideast nations were irate in their response to oil major Saudi Arabia's recent decision to boost its crude output by an additional 500,000 barrels per day if high prices persist. Iraq's oil minister, Lt. Gen. Amer Mohammed Rashid, accused the Saudis of caving to US pressure and of neglecting the interests of their own inhabitants. Saudi analysts responded by stating that its decision was internally motivated, Gulf News reported.
The Saudi economy is 70 percent dependent on oil revenues. Officials in the
Kingdom fear they will be hurt in the long run if prices remain high. They
need sustainable prices to plan spending, and high prices could reduce
demand and encourage consumers to turn to alternative fuels.
In Iran, an Oil Ministry source dismissed the report of a planned Saudi increase, stating that there was no just cause for the Kingdom to take unilateral action in the wake of the OPEC decision last month to raise production by 708,000 barrels per day.
Saudi Arabia, the world's largest oil producer and exporter, boasts an
excess production capacity of 2.3 million barrels per day that can be put on
the market on short notice. As of July, the Kingdom's quota stands at 8.25
million barrels per day.
In the United States, word of a Saudi production increase was welcomed, as
local gas prices have soared. ''As we have said, greater supply at
reasonable prices is in everyone's interest, but I'll defer to the Saudi
government on whatever decision they've made,'' White House spokesman P.J.
Crowley announced recently.
Saudi Oil Minister Ali al-Naimi told his country's official news agency that
the Saudis were seeking ''in any way we can to bring the prices down from
their current level to the target level of $25 per barrel." Oil prices
recently rose to $30 or more per barrel.
"If the price does not decrease, Saudi Arabia, in consultation with other
producers, will enhance production by 500,000 barrels a day within the next
few days,'' he added.
- albawaba.com
© 2000 Mena Report (www.menareport.com)
