Iran's Oil Minister said Monday compliance among the Organization of Petroleum Exporting Countries member nations to implement agreed cuts is at 80%, leaving room for up to 600,000 barrels a day to be taken out of the market.
"Compliance for the group is at 80%," Gholam Hossein Nozari told reporters in Tehran. "There's still 500,000-600,000 barrels a day left (of OPEC's total 4.2 million barrel per day cut) for members to cut."
In a bid to restrain the decline in oil prices, which have fallen by as much as 75% since hitting a high of about $147 a barrel last July, OPEC has announced three production cuts since September to take a total 4.2 million barrels a day of crude oil out of the market.
The organization is scheduled to meet again in Vienna in March 15.
Iranian media cites Nozari as saying Sunday he didn't think the organization will "move towards cutting (its production ceiling) again" at OPEC's March meeting in Vienna.
Nozari said Monday that if members implemented the rest of the 4.2 million barrel a day cut, it would be sufficient for oil prices to rise and would stabilize the market.
"We must assess the true state of the oil market and OPEC members will make the decision," he said.
Iran's oil minister added that he would propose "a new mechanism" to bring about "market recovery" at OPEC's March meeting.
Senior Iranian oil and gas officials held talks Monday in Tehran with a team of Russian officials headed by Russia's energy minister, Sergei Shmatko.
Monday's energy talks follow an announcement by the Islamic republic last week that it had started a test-run of its first nuclear power plant near Bushehr.
The event was attended by Russia's Atomic Energy Chief Sergei Kiriyenko and a delegation of 15 Russian officials from Rosatom and Atomstroyexport, the main contractor for the 1,000-megawatt plant.
Speaking at a press conference after Monday's talks in Tehran, Iran's oil minister said the two sides held "extensive discussions" on cooperation in the energy sector. This included talks on the creation of a joint Iranian-Russian company for projects in areas such as Latin America, natural gas swaps between the two countries, Russia's involvement in the construction of Iran's new Caspian refinery in northern Iran and in the Neka-Jask pipeline, as well as oil field exploration.
Iran is "ready to enter negotiations with Russia," Nozari said.
"Both Iran and Russia stressed (the need for) more cooperation and increased closeness to manage the oil market. Russia's role in oil production, and cooperation with the closest country to OPEC (Russia) definitely will have a positive effect on the oil market," he added.
Iran's oil minister called for other large oil producers to "align themselves" with Russian and Iranian efforts to pursue "mechanisms" allowing "both producer and consumer countries to achieve a price that is both acceptable for development and responsive to the world's current economic state."