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No need for OPEC to increase production: Aliabadi

Business Materials 17 July 2011 11:57
OPEC's President believes there is no economical, technical or urgent reason to increase oil production
No need for OPEC to increase production: Aliabadi

Azerbaijan , Baku, July 17 /Trend D.Khatinoglu/

OPEC's President believes there is no economical, technical or urgent reason to increase oil production, ISNA reported quoting the OPEC president Mohammad Aliabadi as saying.

"The volume of oil consumption in Japan reduced due to earthquake and since the weather is getting warmer the need for fuel reduces therefore there is no economical, technical or urgent reason to increase oil production," he said.

Some countries seek to reduce oil price but the market determine the price and I don't think they would succeed, he added.

Aliabadi noted the oil production is equal to demands and currently about 60 million barrel surplus oil in the world shows that there is no need to increase oil production.

Saudi Arabia has about 2 to 2.5 million barrels of surplus oil production capacity and keen to boost its oil production to keep oil price lower on international markets, whilst Iran opposes it.

Despite Iran's position, Saudi Arabia boosted output to 10 million barrels a day in July, the highest rate for over two decades.

However, some OPEC members and oil consumers say the high oil prices can damage the world economic growth in long term.

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