Iran opposes rise in OPEC production ceiling

TEHRAN: Iran will reject any increase of the OPEC production ceiling in the cartel's next meeting, the country's Oil Ministry caretaker Mohammad Aliabadi told the semi-official Mehr news agency on Sunday. "Considering the demand and supply situation in the oil market.

Iran will reject any increase in the OPEC output ceiling in the next meeting OPEC has no intention to increase prices of crude," Aliabadi said.

Aliabadi condemned Saudi Arabia's "unilateral decision" to increase its output and branded the move as a politically-motivated one.

"This increase is due to the request of America," he said.

He also said a stable crude price in the future would be possible if the member states adhere to the organisation's decision with regard to the production ceiling.

"It seems by maintaining the (current) OPEC crude ceiling there would be price stability in the international market."

The next meeting of the Organization of the Petroleum Exporting Countries (OPEC) is scheduled for Dec. 14, 2011. Iran heads the rotating OPEC presidency.

The group has already pledged to curb output by 4.2 million barrels per day (bpd), around 5 percent of global supply, since September last year to match the sharpest fall in demand since 1981.

Fundamentals of supply and demand are still weak and most analysts agree the oil market rally to a high for this year of above $73 a barrel at the end of June was a result of cross-asset ebullience, which could fizzle out.

Prices have since dropped back below $70, although they have more than doubled from last December's low of $32.40.

Copyright Reuters, 2011