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Opec mulls

output increase

MUSCAT: The Organisation of Petroleum Exporting Countries (Opec) is to consider a modest increase in oil production at its Vienna meeting that will not bring prices tumbling down, Oman's Oil Minister Mohammad al-Romhi said on Sunday.

But his Iranian counterpart Bijan Namdar Zangheneh, after talks in Muscat, steered clear of any commitment to raise production and would not be drawn into giving a figure for a possible increase.

The March 27 meeting "will consider an increase in production that will not have much influence on bringing prices down," Romhi told reporters.

Muscat, a non-Opec producer, joined output cuts decided in March 1999 that have since led to a tripling of prices to nine-year highs of more than $30 a barrel.

Oman's production was cut by some 60,000 barrels per day (bpd) to the current level of between 810,000 and 820,000 bpd.

The Iranian minister, meanwhile, continued to play down talk of an agreement with Saudi Arabia last week to raise production to bring spiralling oil prices back under control.

"We do not want to decide anything, we will decide in the Opec meeting," Zangheneh said. "We have stated our views before with Algeria and Libya," which in January along with Iran voiced their opposition to cuts.

"We haven't agreed" on an increase, he said, referring to his talks last Wednesday with Saudi Oil Minister Ali al-Nauimi. "We discussed. We are coordinating with others to make the best decision for our meeting in Vienna."

Zangheneh, whose country is opposed to US pressure for a large output increase, was on Sunday to travel on to the United Arab Emirates.

The Iranian and Saudi Oil minister agreed, in a joint statement issued in Riyadh, on the need for "adequate and timely" supplies, but they gave no details on volume or timing.

They also "noted that the recent rising oil price levels and their continued volatility is not in the interests of producers or consumers."ÑAPP