Iran and Indonesia joined a chorus of OPEC members opposing any release of extra output onto global markets this winter.
Oil-dependent Western economies are eager for more supply from the Middle East-dominated cartel to avoid damaging price spikes, but the hawks argue that prices are rising on Washington's saber-rattling at Iraq, not because of a real shortage.
International benchmark Brent crude oil futures climbed 57 cents to $27.52 a barrel in London, while New York futures gained 58 cents to $28.92. Both markers are hovering near their highest level since the September 11th attacks on the US, having jumped by a third since the start of the year.
Iran and Indonesia yesterday joined fellow OPEC members Kuwait and Venezuela in arguing against any relaxation in output curbs when ministers meet to decide policy on September 19th.
The Organization of the Petroleum Exporting Countries (OPEC) has curbed output by 20 per cent since the beginning of 2001 to keep prices up.
"Iran believes market fundamentals do not warrant a production increase. The price is high because of the war rhetoric," according to an OPEC delegate.
Oil-importing countries believe inventories could get dangerously low by year-end without extra supply from OPEC. The US government's Energy Information Administration has called for the cartel to raise quotas by 1 million barrels daily from the current daily ceiling of 21.7 million barrels.
Iran is OPEC's second-largest oil exporter, but it is still dwarfed by Saudi Arabia, which has yet to publicly state its position ahead of next month's meeting.
A Gulf source, who is also a senior OPEC delegate, said earlier this week that the 11-member cartel was on course to increase output starting October 1st to meet expected demand growth, despite the public opposition from other countries. - (Reuters)
