Zanganeh told reporters on the sidelines of the first seminar for economization of fuel consumption that the year 2004 has been an exceptional year due to economic growth in such countries as the US, China, Russia, India and Japan, which prompted increase in energy consumption and demand.
Despite the increase in demand, oil supply by OPEC and non-OPEC members has been higher, said Zanganeh.
He said high crude prices on the markets has been due to political tension in the Middle East, including Iraq, the US' technical problems for production of gasoline and certain other problems concerning oil trade.
He added despite supply outstripping the demand, OPEC decided to raise output on July 1, 2004 to tranquilize the market and address the demands of customers.
The minister said market is worried about safe supply as well as political developments and terrorist incidents in the Middle East.
OPEC has no problem in meeting crude oil demand of the market in the fourth quarter of 2004 because supply exceeds demand by three million barrels.
He said OPEC is capable of producing more than 29 million barrels of crude oil a day.
... Payvand News - 6/20/04 ... --