Iran said Monday it was prepared to boost oil production in line with an OPEC output agreement after prices stayed above the $28 mark for 20 straight days.
Deputy Oil Minister Hossein Kazempour-Ardebili said Tehran would increase production "at the same time as the other OPEC countries," which the cartel's news service said would be later in the day.
Oil prices in London edged lower Monday after the cartel's announcement, with benchmark Brent crude for December delivery selling for $30.90 a barrel down from $30.95 at Friday's close.
Under its price stability mechanism, OPEC has pledged to increase output by 500,000 barrels a day if its own basket price remains above $28 a barrel for more than 20 trading days -- a threshold reached on Friday.
OPEC has already boosted production three times over the past 12 months in an attempt to rein in prices that have spiked to 10-year highs above $35 a barrel on a thirsty market.
The soaring prices are expected to add some $10 billion in extra revenues for Iran, which underestimated prices in the current budget to avoid the shortfalls of the previous two years when the market collapsed.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)