Iran is capable of producing more oil to meet international market's demand but the Islamic state is committed to Opec's decision on output change, Iran's Oil Minister Gholamhossein Nozari said on Saturday. "If statistics show there is a need to raise Opec's output, Iran can produce more oil to meet the market's needs but is determined to stay committed to Opec's decision," Nozari told a news conference.
Opec ministers are due to meet in Abu Dhabi on December 5 and discuss raising output, although many members, including Iran, have said more crude would be unlikely to tame a rally fuelled by speculation and political tension. Nozari said Organisation of the Petroleum Exporting Countries (Opec) will discuss increasing output at its Abu Dhabi meeting.
"Some countries agree with an output increase and others believe there is a good balance between oil supply and demand. The issue will be discussed in the next meeting," the minister said.
Nozari said it was too early to predict what action Opec might take when it meets in Abu Dhabi, leaving the door open for a possible production rise to cool prices. When asked whether Iran wanted an Opec output change at December meeting, Nozari said: "We are still reviewing the issue."
The United States, Iran's arch foe, has urged Opec to boost production because of shrinking oil inventory levels in developed economies and to help bring down prices that have surged to record high levels.