Iran would welcome a crude oil production increase as long as it happens in agreement between Organization of Petroleum Exporting Countries members, a senior Iranian oil official said days before major oil producers and consumers will meet in Saudi Arabia to discuss soaring oil prices.
"Any gesture to have new production happen" is "welcome," provided that it happens in the context of OPEC quotas and member agreement, Hojjatollah Ghanimifard, executive director for international affairs at National Iranian Oil Co., told Dow Jones Newswires in a telephone interview late Tuesday.
"We welcome any gesture that is going to bring some sort of relaxation to the market," Ghanimifard said.
"But we hope that all decisions, as far as the decision to increase production is concerned ... happens in the context of OPEC member agreement," he added.
The latest surge in crude prices, which almost hit $140 a barrel earlier this week, this month prompted Saudi Arabia, the world's largest crude oil exporter, to call for a meeting of the world's most influential oil producers and consumers in the Red Sea city of Jeddah on June 22.
The meeting will include OPEC ministers, heads of government and chief executives of major oil companies.
Saudi Arabia is expected to announce an increase in crude output in Jeddah after United Nations Secretary General Ban Ki Moon said last week following a meeting with Saudi Oil Minister Ali Al Naimi that the kingdom would boost production by 200,000 barrels a day in July.
According to Ghanimifard, the move would mainly have a positive psychological impact on oil markets.
"Everyone knows there is no shortage in the crude side of the market. Part of the price increase trend in the market is due to the psychological effect above all other factors," he said.
Officials in the U.S. and other major oil-consuming countries have long called for OPEC to meet ahead of its next scheduled meeting in September to discuss production increases as rising fuel costs have heightened concerns about an economic recession in the U.S. and sparked fears of an imminent supply crunch as global oil demand begins to outpace current production levels.
Officials at OPEC, which accounts for 40% of global oil production, have maintained that factors beyond their control, such as speculation and a weakening U.S. dollar, are behind the drive in crude oil prices.