Iran to oppose proposal to raise OPEC crude output

Tehran, June 20: Iran will not accept Saudi Arabia's proposal to increase crude output of Organization of the Petroleum Exporting Countries (OPEC), Iran's representative to the OPEC was quoted as saying on Tuesday.

Iran, along with Venezuela and Iraq, is going to veto the Saudi Arabia's proposal at the June 22 OPEC meeting in Vienna, Hossein Kazempour Ardebili was quoted by Tehran Times daily as saying.

"If Russia also increases its production, that would be a breach of the cooperation agreement," Ardebili said. OPEC members will discuss at the meet the proposal by Saudi Arabia to end the OPEC/ non-OPEC deal to balance the oil market and increase the oil price. Last year, OPEC members unanimously agreed on the oil price of USD 60 dollars per barrel, by cutting oil output by 1.2 million barrels per day (bpd) to 32.5 million bpd. Non-OPEC members including Russia, Oman and Mexico also agreed to cut 558,000 bpd off their production to stabilise the market.

Meanwhile, oil prices ended lower on Tuesday as investors awaited the upcoming OPEC meeting.

The West Texas Intermediate for July delivery fell USD 0.78 to settle at USD 65.07 a barrel on the New York Mercantile Exchange, while Brent crude for August delivery was down USD 0.26 to close at USD 75.08 a barrel on the London ICE Futures Exchange. (IANS)