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No reason to increase OPEC output, says Iran's OPEC governor

Tehran, Aug 14, IRNA -- Iran's representative to the Organization of Petroleum Exporting Countries (OPEC) board of governors, Hossein Kazempour Ardebili, said the organization had no reason to pump more oil into the market.

According to the Petroenergy Information Network (PIN), Ardebili believes that oil prices will continue to rise regardless of the basic factors of supply and demand.

"At present, the market is awash with 2.8 million surplus barrels of oil pumped into world markets negating any need to hike production," he noted.

The official further said that excessive supplies pumped into international markets has only served to increase individual countries' reserves, especially the United States` strategic petroleum reserve.

He attributed the current trend of rising oil prices to political and military developments, concerns about future oil supply and OPEC limitations on more oil production.

He added that if a way out of current political and military tensions could be found and a stable situation was created, surplus oil could push prices down.

Kazempour said that with OPEC members already producing in excess of their quotas and prices still rising, the demand by a group within OPEC for a hike in production would have no rationale whereas another group insists it is difficult to enforce quotas agreed to by individual members.

... Payvand News - 8/14/04 ... --

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