OPEC

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The Organization of the Petroleum Exporting Countries (OPEC) is an international organization made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Since 1965 its international headquarters have been in Vienna, Austria. It is considered to be a cartel by some observers [1][2].

The principal aim of the Organization, according to its Statute, is the determination of the best means for safeguarding their interests, individually and collectively; devising ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry."[1]

OPEC's influence on the market has not always been a stabilizing one, however. It alarmed the world and triggered high inflation across both the developing and developed world through its use of the oil weapon in the 1973 oil crisis. Its ability to control the price of oil has diminished greatly since its heyday, following the much-expanded development of the Gulf of Mexico, the North Sea, and the growing fluidity of the market. However, OPEC still has considerable impact on the price of oil. It is still commonly used as a textbook example of a cartel.

The Organization now has 11 member states. They are listed below with their affiliation dates.

Africa

* Nigeria (July 1971)

Middle East

* Algeria (July 1969)
* Libya (December 1962)
* Iran (September 1960)
* Iraq (September 1960)
* Kuwait (September, 1960)
* Qatar (December 1961)
* Saudi Arabia (September 1960)
* United Arab Emirates (November 1967)

South America

* Venezuela (September 1960)

Southeast Asia

* Indonesia (December 1962. Membership currently under review as Indonesia is no longer considered by OPEC as a net oil exporter. See also current acting OPEC secretaries general.)

Former Members

* Gabon (Full member from 1975 to 1995)
* Ecuador (Full member from 1963 to 1993)

OPEC's official language is English, although the official language of a majority of OPEC member-states is Arabic, as seven current members are Arab states. Only one member nation (Nigeria) has English as an official language.


History

Venezuela was the first country to move towards the establishment of OPEC by approaching Iran, Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communications between them. In September 1960, the governments of Iraq invited Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss the reduction in price of crude oil produced by their respective countries. As a result, OPEC was founded to unify and coordinate members' petroleum policies. Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were members of OPEC, but Ecuador withdrew in December 1992, and Gabon followed suit in January 1995. Although Iraq remains a member of OPEC, Iraqi production has not been a part of any OPEC quota agreements since March 1998. EIA estimates that the current eleven OPEC members account for about 40% of world oil production, and about 2/3 of the world's proven oil reserves.



The Yom Kippur War

The persistence of the Arab-Israeli conflict finally triggered a response that transformed OPEC from a mere cartel into a formidable political force. After the Six Day War of 1967, the Arab members of OPEC formed a separate, overlapping group, the Organization of Arab Petroleum Exporting Countries, for the purpose of centering policy and exerting pressure on the West over its support of Israel. Egypt and Syria, though not major oil-exporting countries, joined the latter grouping to help articulate its objectives. Later, the Yom Kippur War of 1973 galvanized Arab opinion. Furious at the emergency re-supply effort that had enabled Israel to withstand Egyptian and Syrian forces, the Arab world imposed the 1973 oil embargo against the United States and Western Europe. In the 1970s, the great Western oil conglomerates suddenly faced a unified block of producers.

This Arab-Israeli conflict triggered a crisis already in the making. The West could not continue to increase its energy use 5% annually, pay low oil prices, yet sell inflation-priced goods to the petroleum producers in the Third World. This was stressed by the Shah of Iran, whose nation was the world's second-largest exporter of oil, and the closest ally of the United States in the Middle East at the time. "Of course [the world price of oil] is going to rise," the Shah told the New York Times in 1973. "Certainly! And how...; You [Western nations] increased the price of wheat you sell us by 300%, and the same for sugar and cement...; You buy our crude oil and sell it back to us, redefined as petrochemicals, at a hundred times the price you've paid to us...; It's only fair that, from now on, you should pay more for oil. Let's say 10 times more."

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Operations

OPEC's member countries hold about two-thirds of the world's oil reserves. In 2005, OPEC accounted for 41.7% of the world's oil production, compared with 23.8% by OECD members and 14.8% by the Former Soviet Union. [3]

Since currently worldwide oil sales are denominated in U.S. dollars, changes in the value of the dollar against other world currencies affect OPEC's decisions on how much oil to produce. For example, when the dollar falls relative to the other currencies, OPEC-member states receive smaller revenues in other currencies for their oil, causing substantial cuts in their purchasing power. After the introduction of the euro, Iraq decided it wanted to be paid for its oil in euros instead of US dollars causing OPEC to consider changing its oil exchange currency to euros. This idea has not found traction and has been abandoned, for now.

OPEC decisions have considerable influence on international oil prices. For example, in the 1973 energy crisis OPEC refused to ship oil to western countries that had supported Israel in the Yom Kippur War or October War, which they fought against Egypt and Syria. This refusal caused a fourfold increase in the price of oil, which lasted five months, starting on October 17, 1973, and ending on March 18, 1974. OPEC nations then agreed, on January 7, 1975, to raise crude oil prices by 10%. At that time, OPEC nations — including many who had recently nationalized their oil industries — joined the call for a new international economic order to be initiated by coalitions of primary producers. Concluding the First OPEC Summit in Algiers they called for stable and just commodity prices, an international food and agriculture program, technology transfer from North to South, and the democratization of the economic system.

The policy has been successful, causing the price of crude oil to rise to levels that had, at one time, been reached only by refined products. However, OPEC's ability to raise prices does have some limits. An increase in oil price decreases consumption, and could cause a net decrease in revenue. Furthermore, an extended rise in price could encourage systematic behavior change, such as alternative energy utilization, or increased conservation.

Leading up to the 1990-91 Gulf War, Iraqi President Saddam Hussein advocated that OPEC push world oil prices up, thereby helping Iraq, and other member states, service debts. But the division of OPEC countries occasioned by the Iraq-Iran War and the Iraqi invasion of Kuwait marked a low point in the cohesion of OPEC. Once supply disruption fears that accompanied these conflicts dissipated, oil prices began to slide dramatically.

After oil prices slumped at around $10 a barrel, concerted diplomacy, sometimes attributed to Venezuela’s president Hugo Chávez, achieved a coordinated scaling back of oil production beginning in 1998. In 2000, Chávez hosted the first summit of heads of state of OPEC in 25 years. In August 2004, OPEC began communicating that its members had little excess pumping capacity, indicating that the cartel was losing influence over crude oil prices. Indonesia is reconsidering its membership having become a net importer and being unable to meet its production quota.

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The Organization of the Petroleum Exporting Countries (OPEC) Brief History

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by eight other Members: Qatar (1961); Indonesia (1962); Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973–1992) and Gabon (1975–1994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.

The 1960s

These were OPEC’s formative years, with the Organization, which had started life as a group of five oil-producing, developing countries, seeking to assert its Member Countries’ legitimate rights in an international oil market dominated by the ‘Seven Sisters’ multinational companies. Activities were generally of a low-profile nature, as OPEC set out its objectives, established its Secretariat, which moved from Geneva to Vienna in 1965, adopted resolutions and engaged in negotiations with the companies. Membership grew to ten during the decade.
The 1970s

OPEC rose to international prominence during this decade, as its Member Countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. There were two oil pricing crises, triggered by the Arab oil embargo in 1973 and the outbreak of the Iranian Revolution in 1979, but fed by fundamental imbalances in the market; both resulted in oil prices rising steeply. The first Summit of OPEC Sovereigns and Heads of State was held in Algiers in March 1975. OPEC acquired its 11th and final current Member, Nigeria, in 1971.
The 1980s

Prices peaked at the beginning of the decade, before beginning a dramatic decline, which culminated in a collapse in 1986 — the third oil pricing crisis. Prices rallied in the final years of the decade, without approaching the high levels of the early-1980s, as awareness grew of the need for joint action among oil producers if market stability with reasonable prices was to be achieved in the future. Environmental issues began to appear on the international agenda.
The 1990s

A fourth pricing crisis was averted at the beginning of the decade, on the outbreak of hostilities in the Middle East, when a sudden steep rise in prices on panic-stricken markets was moderated by output increases from OPEC Members. Prices then remained relatively stable until 1998, when there was a collapse, in the wake of the economic downturn in South-East Asia. Collective action by OPEC and some leading non-OPEC producers brought about a recovery. As the decade ended, there was a spate of mega-mergers among the major international oil companies in an industry that was experiencing major technological advances. For most of the 1990s, the ongoing international climate change negotiations threatened heavy decreases in future oil demand.

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Organization of the Petroleum Exporting Countries Functions

The OPEC Member Countries coordinate their oil production policies in order to help stabilise the oil market and to help oil producers achieve a reasonable rate of return on their investments. This policy is also designed to ensure that oil consumers continue to receive stable supplies of oil.

The Ministers of energy and hydrocarbon affairs meet twice a year to review the status of the international oil market and the forecasts for the future in order to agree upon appropriate actions which will promote stability in the oil market.

The Member Countries also hold other meetings at various levels of interest, including meetings of petroleum and economic experts, country representatives and special purpose bodies such as committees to address environmental affairs.

Decisions about matching oil production to expected demand are taken at the Meeting of the OPEC Conference. Details of such decisions are communicated in the form of OPEC Press Releases.

The OPEC Secretariat is a permanent inter-governmental body. The Secretariat which has been based in Vienna since 1965, provides research and administrative support to the MCs. The Secretariat also disseminates news and information to the World at large.

The official language of the Secretariat is English.

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OFID's Scholarship Award 2007

The OPEC Fund for International Development (OFID) is pleased to announce its Scholarship Award to support undergraduate students from developing countries in pursuit of higher education. Through its scholarship scheme, OFID aims to help highly motivated, highly driven individuals overcome one of the biggest challenges to their careers.


» Click here to Apply

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The OPEC Fund for International Development (OFID) is an intergovernmental development finance institution established in 1976 by the member states of the Organization of the Petroleum Exporting Countries. The Fund was conceived at the Conference of the Sovereigns and Heads of State of OPEC member countries, which was held in Algiers, Algeria, in March 1975. A Solemn Declaration of the Conference "reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment," and called for measures to strengthen cooperation between these countries. » See Agreement Establishing the OPEC Fund for International Development.
The Aims

To promote cooperation between OPEC member countries and other developing countries as an expression of South-South solidarity. To help particularly the poorer, low-income countries in pursuit of their social and economic advancement.
The Means

* By extending concessionary financial assistance in the form of loans for development projects and programs and for balance of payments support
* By providing grants in support of technical assistance, food aid, research and similar activities, and humanitarian emergency relief
* By contributing to the resources of other development institutions whose work benefits developing countries
* By serving OPEC member countries as an agent in the international financial arena whenever collective action is deemed appropriate
* By participating in the financing of private sector activities in developing countries.


The Resources

The Fund's resources consist of voluntary contributions made by OPEC member countries and the accumulated reserves derived from its various operations. At the close of the year 2005, contributions pledged by member countries totaled $3,435 million, out of which $2,455 million was direct contributions to OFID. The Reserve Account stood at $2,470 million.


The Beneficiaries

All developing countries, with the exception of OPEC member countries, are in principle eligible for Fund assistance. The least developed countries, however, are accorded higher priority and have consequently attracted the greater share of the Fund's resources. So far, 119 countries in Africa, Asia, Latin America, the Caribbean, the Middle East and Europe have benefited from the Fund's financial assistance. The Fund has also cooperated, over the years, with a myriad of multilateral, bilateral, national, non-governmental and other organizations worldwide, joining resources and efforts to assist developing countries.
Commitments

By the end of August 2006, the level of cumulative development assistance extended by the Fund stood at US$8,090 million and disbursements reached US$5,374 million and were broken down as follows:
Public sector financing:

* 821 project loans valued at US$4,981 million
* 42 program loans amounting to US$315 million
* 185 balance of payments support loans worth US$724 million
* 30 HIPC Initiative loans totaling US$214 million
* 1 loan to the PRGF Trust of the IMF of US$50 million

Private sector financing:

90 operations valued at US$472 million
Grant operations:

* 807 grants worth a total of US$362 million
* International Fund for Agricultural Development (IFAD): US$861.1 million
* International Monetary Fund (IMF) Trust Fund: US$110.7 million

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The OPEC Secretariat


The Secretariat carries out the executive functions of the Organization in accordance with the provisions of the OPEC Statute and under the direction of the Board of Governors. It provides the Conference with support facilities; carries out research into energy, economics and finance; prepares reports and statistics; provides information on the Organization and its activities through various publications; receives visitors from different parts of the world; and organizes seminars, briefings and lectures. The Secretariat is equipped with an excellent library, and serves officials from Member Countries (MCs) as well as researchers, scholars and students from MCs and elsewhere.

Financed by MCs on the basis of equal contributions, the Secretariat is staffed by nationals of MCs called officers, and by support staff, recruited locally and abroad, together with secretarial and clerical staff. The Chief Executive of the OPEC Secretariat is the Secretary General, who is the legally authorized representative of the Organization.

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Iran facts and figures

Population

(1,000 inhabitants) 68,600


Land area

(1,000 sq km) 1,648


Population density

(inhabitants per sq km) 42


GDP per capita ($) 2,863


GDP at market prices

(million $) 196,409


Value of exports

(million $) 60,012


Value of petroleum exports

(million $) 48,286


Current account balance

(million $) 13,268


Proven crude oil reserves

(million barrels) 136,270


Proven natural gas reserves

(billion cu m) 27,580


Crude oil production

(1,000 b/d) 4,092


Marketed production of natural gas

(million cu m) 94,550


Refinery capacity

(1,000 b/d) 1,474


Output of refined products

(1,000 b/d) 1,440


Consumption of refined products

(1,000 b/d) 1,512


Crude oil exports

(1,000 b/d) 2,395


Exports of refined products

(1,000 b/d) 402


Natural gas exports

(million cu m) 4,735


Notes

* b/d (barrels per day)
* cu m (cubic metres)

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وزير انرژي آمريكا :

آمريكا به فشارهاي خود براي افزايش توليد نفت اوپك ادامه خواهد داد



وزير انرژي آمريكا صريحا اعلام كرد، واشنگتن به فشارهاي خود به اوپك براي افزايش توليد نفت و تامين تقاضاي بازار، ادامه خواهد داد .



ساموئل بودمن در مصاحبه با شبكه سي ان بي سي آمريكا، افزود: آمريكا به فشارهاي خود به اوپك و ساير كشورهاي توليد كننده نفت براي تامين نياز بازار و افزايش عرضه انرژي، ادامه خواهد داد.
وزراي نفت اوپك درنشست فوق العاده خود در شهر دوحه قطر با كاهش 2/1 ميليون بشكه اي توليد نفت از ابتداي نوامبر موافقت كردند.
بودمن در ادامه تصريح كرد: ميزان خريد نفت خام آمريكا براي افزايش ذخاير انرژي اين كشور، بيش از 700 ميليون بشكه افزايش خواهد يافت. با توجه به نزديك شدن به فصل سرما، ذخاير انرژي آمريكا بايد بيش از پيش پر باشد.

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عربستان از كاهش مجدد توليد نفت اوپك حمايت كرد


وزير نفت عربستان در مصاحبه با روزنامه الحيات تاكيد كرد ، رياض از كاهش مجدد توليد نفت اوپك در نشست ابوجا حمايت خواهد كرد .



علي النعيمي در ادامه تصريح كرد : اگر كاهش 2/1 ميليون بشكه اي توليد نفت اوپك موجب تثبيت قيمتها نشود ، عربستان از پيشنهاد كاهش مجدد توليد نفت اوپك در نشست ماه دسامبر حمايت خواهد كرد .

اوپك در نشست فوق العاده دوحه قطر با كاهش روزانه 2/1 ميليون بشكه توليد نفت خود از ابتداي نوامبر ، موافقت كرده بود . حمايت عربستان از كاهش توليد اوپك ، موجب افزايش قيمت نفت به بيش از 60 دلار در هر بشكه شده است .

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كانديداي رياست جمهوري اكوادور:

اكوادور مجددا" به اوپك خواهد پيوست


كانديداي انتخابات رياست جمهوري اكوادور تاكيد كرد ، در صورت پيروز شدن در انتخابات ، راه را براي عضويت مجدد اكوادور در سازمان كشورهاي صادر كننده نفت اوپك ، هموار خواهد كرد .



آخرين نظرسنجيها در اكوادور حاكي از پيروزي احتمالي رافائل كوريا در انتخابات رياست جمهوري اين كشور است .

وي تصريح كرد : تنها با عضويت در اوپك منافع اقتصادي و نفتي اكوادور تامين خواهد شد . ما به دنبال اتحاد و پيوستگي با ساير كشورهاي توليد كننده نفت عضو اوپك هستيم و از اعضاي اوپك مي خواهيم شرايط را براي عضويت مجدد اكوادور در اين سازمان ، آماده كنند .

اكوادور كه هم اكنون روزانه 540 هزار بشكه نفت توليد مي كند ، دسامبر 1992 ميلادي از اوپك خارج شد . اكثر نفت صادراتي اكوادور به آمريكا ارسال مي شود .

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در خصوص كاهش مجدد توليد اوپك

كويت و ليبي در مقابل ايران، عربستان و قطر قد علم كردند


در شرايطي كه قيمت نفت به بالاي 60 دلار در هر بشكه بازگشته است اعضاي اوپك در مورد كاهش بيشتر توليد دچار اختلاف نظر شده اند.



به نقل از رويترز، برخي از اعضاي اوپك با اشاره به حجم بالاي ذخاير نفت در جهان و بالا بودن حجم عرضه در مقايسه با تقاضا خواهان كاهش بيشتر توليد اوپك در نشست 14 دسامبر هستند.

بزرگترين توليدكننده اوپك از جمله طرفداران كاهش بيشتر توليد است.

علي النعيمي وزير نفت عربستان گفت بازار نفت در حال حاضر با عدم تعادل مواجه است و اين به علت حجم بالاي ذخاير نفت است. او كاهش 100هزار بشكه در روز از توليد اوپك را پيشنهاد كرده است.

اين درحالي است كه مقامات نفتي ليبي معتقدند بايد سقف فعلي توليد اوپك حفظ شود.

عبدالله العطيه وزير انرژي قطر نيز ضمن تأييد نظر عربستان گفت ذخاير نفت در جهان در سطح بالايي قرار دارد. وي در عين حال در مورد نظر قطر براي كاهش يا حفظ سقف توليد اوپك در نشست 14 دسامبر چيزي نگفت.

ايران نيز از تمايل خود براي كاهش توليد خبر داده است.

وزيري هامانه گفت: «اگر قيمتها كاهش يابد احتمال كاهش توليد وجود دارد.»

كويت نيز از ديگر مخالفان كاهش توليد است. وزير نفت كويت گفت: «كويت در شرايطي كه قيمت نفت بالاي 60دلار است نبايد هيچگونه كاهشي در توليد انجام شود.»

وزير نفت امارات نيز ضمن خودداري از اعلام موضع خود گفت: «قبل از اتخاذ هرگونه تصميم ديگر بايد آثار و نتايج تصميم قبلي اوپك مورد بررسي قرار گيرد.»

اوپك در نشست ماه گذشته خود تصميم گرفت از اول نوامبر توليد خود رابه ميزان 2/1 ميليون بشكه در روز كاهش دهد.

تحقيقات نشان مي دهد تنها 800 هزار بشكه در روز از توليد اوپك كاسته شده است.

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رييس اوپك:

سهم اوپك در بازار جهاني نفت به كمتر از 30 درصد رسيد


رييس سازمان كشورهاي صادر كننده نفت اوپك تاكيد كرد ، سهم اين سازمان در بازار جهاني نفت از 50 درصد به كمتر از 30 درصد كاهش يافته است .



ادموند داكورو كه در كنفرانس خبري در شهر ابوجا سخن مي گفت ، افزود : سهم توليد نفت اوپك در بازار جهاني نفت از 40 ميليون بشكه به كمتر از 26 ميليون بشكه در روز كاهش يافته است . پيوستن آنگولا و سودان به اوپك موجب افزايش قدرت و نفوذ اين سازمان در بازار جهاني انرژي خواهد شد .

وي تصريح كرد : اكثر كشورهاي اوپك نگران وضعيت بازار و ثبات عرضه و تقاضا هستند و اميدوارم در نشست 14 دسامبر ، تصميم مناسبي براي سقف توليد آتي اوپك اتخاذ شود .

ميزان توليد نفت نيجريه به علت گسترش تهديدات و حملات تروريستي در خليج نيجر از 4/2 ميليون به كمتر از 8/1 ميليون بشكه در روز رسيده است .

وي بار ديگر تاكيد كرد : اوپك در نشست آتي خود در شهر ابوجا در خصوص كاهش مجدد توليد نفت تصميم گيري خواهد كرد . اگر روند نزولي قيمت ادامه داشته باشد ، اوپك قطعا در خصوص كاهش مجدد توليد خود تصميم گيري خواهد كرد . اوپك خواستار ثبات قيمت نفت بين 60 تا 70 دلار است .
وي ضمن حمايت از پيوستن آنگولا و سودان به اوپك ، گفت : به روسيه ، مكزيك ، سوريه و عمان نيز كه به عنوان ناظر در جلسات اوپك شركت مي كنند ، توصيه مي كنم هر چه زودتر به اوپك بپيوندند . اين مساله هم به نفع آنها و هم به نفع كل كشورهاي توليد كننده نفت خواهد بود .

اوپك در 14 سپتامبر 1960 ميلادي در شهر بغداد توسط پنج كشور عراق ، عربستان ، ونزوئلا ، كويت و ايران تاسيس شد . نيجريه طي سال 1971 ميلادي به اين سازمان پيوست . تعداد اعضاي اوپك به 13 كشور رسيد ولي گابن و اكوادور از عضويت در اين سازمان انصراف دادند .

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OPEC welcomes new members



TEHRAN, Dec.3 (ISNA)-Iran's OPEC representative, Hussein Kazempour informed that OPEC welcomed new memberships.

Kazempour asserted that the presence of new members would enable the OPEC to support oil consuming countries in a better way.

"Iran supports new OPEC membership," he said.

He also went on to inform that OPEC had not received any membership applicants so far.

"OPEC Governing Board will meet in Vienna on Wednesday and if by that time such an application is made, then the board will submit it to the ministers on December 14th," he added.

It is also reported that Angola, with the daily production of 1 million and 4 hundred thousand barrels had announced willingness to apply for OPEC membership.

Also Sudan is the next said to be serious candidate for OPEC membership.

It is also reported that with the possible membership of these two countries, the OPEC's share of world crude oil would rise up to 43 percent.

This is while, in the past few days, the new Ecuadorian President had announced the willingness of his country to return to OPEC.

End Item

[donsaeid]

Iran official sees need for OPEC oil cut


TEHRAN (Reuters) - Iran's OPEC governor said on Sunday that the oil cartel needed to cut production further because of a slowdown in world economic growth and rising oil stocks, the official IRNA news agency reported.

Since it agreed to cut production from November by 1.2 million barrels per day, Ministers in the Organisation of the Petroleum Exporting Countries (OPEC) have expressed differing views on whether the group needs to reduce supplies further.

Some are some concerned about high fuel stockpiles, but others are reluctant about a additional cut because crude prices are holding firm above $60.

"Some factors including a decrease in the world's economic growth and accumulation of oil stocks and production, shows that the market needs another cut in OPEC production," Iran's OPEC governor, Hossein Kazempour Ardebili, was quoted as saying.

Iranian Oil Minister Kazem Vaziri-Hamaneh was on Saturday quoted as saying OPEC may cut its crude production again if prices fall.

"There is such a possibility if the prices fall" he said. "This cannot be predicted right now."

Iran, OPEC's second crude producer after Saudi Arabia, has said it has cut its oil output by 176,000 bpd as its part of the total OPEC production cut from November.