Iran Rules Out Raising Crude...

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[Iran, the second largest exporter among oil cartel OPEC, on Wednesday ruled out increasing the output immediately to cool record high prices but said current rates were not good for both consumers and producers. &quot;We have some spare capacity in oil production. At the same time we have to say that there is no need for more supplies to the market,&quot; Iranian Oil Minister Gholamhossein Nozari told reporters on the sidelines of the 19th World Petroleum Congress in Madrid. Click On The Oil Muddle: Full Coverage Record rates at $142 a barrel have forced countries like India to raise fuel price, which is spurting thier domestic inflation. India, faced with 13-year high inflation of 11.42 per cent after raising petrol and diesel prices by Rs 5 and Rs 3 a litre last month, has been seeking a hike in output by Organization of Petroleum Exporting Countries (OPEC) to cool the crude prices. &quot;If there is going to be any need in the market, we surely are going to contribute to that, Nozari said. Iran has a production capacity of 4.35 million barrels per day. Commenting on the current level of crude prices, he said high prices are &quot;not good for consumers or producers. We as producers want sustainable markets&quot;. Nozari said high oil prices were a result of devaluation of US dollar and if it continues like this, we have no other choice but high prices. Tehran is seeking international help to develop its crude reserves as it sets out on an ambitious plan to raise oil output to 5.3 billion barrels a day by 2014. Out of Iran's 700 billion barrels of liquid hydrocarbons in place, 138 billion barrels can be recovered, Nozari said in his speech at World Petroleum Congress. &quot;International co-operation is required for enhancement, because the energy industry is a multilateral inter-related industry.&quot; Iran has also plans to triple its gas production by 2014. When asked about the Israeli threat to strike at Iranian nuclear facilities, Nozari evaded a direct reply on his country using oil as a weapon. &quot;Iran has always been a reliable source of supplies to the market and Iran will remain a reliable supplier for ever,&quot; he said. &quot;First of all, Iran is a very, very big country. If there is any kind of activity (Iran) is going to react fiercely, Nozari said but quickly discounted an Israeli action by saying &quot;we do not think wise people can even think of any action like that&quot;. A mere statement by Israel caused huge volatility in the markets and so &quot;if any action happens in any part of that region where major oil comes from, one can imagine what can happen to the markets. Can any wise person think of any such action?&quot;, he said. Asked about Iran's reported instance of forming an OPEC kind of body for gas producing countries, he said Tehran had never advocated any cartel and only technological advancement and experiences were being sought to be shared through a forum of gas exporting countries. Meanwhile, Oil steadied near $141 a barrel on Wednesday, within sight of a record high, boosted by forecasts global supply will lag demand and further weakness in the dollar. Tension between Iran and Israel also lifted prices, and analysts said that could remain supportive for the rest of the week ahead of the U.S. Independence Day holiday in the United States. &quot;There could be short-covering as Iranian-Israeli tension means few will want to go short into the long weekend,&quot; said Mike Wittner, analyst at Societe Generale. Adding to concern about supply, the International Energy Agency on Tuesday cut its global oil supply forecast for the next five years, signalling little relief from high oil prices. The weak dollar also supported crude. The euro extended earlier gains against the dollar to hit a two-month high on Wednesday as traders anticipated the European Central Bank would raise interest rates on Thursday. Investors have been using oil and other commodities as a hedge against the weaker dollar and inflation, helping fuel the market's rally of almost 50 percent since the start of the year. (Agencies)