Major OPEC producer Iran played down growing anxiety over an overheated oil market yesterday and blamed high taxes in consuming nations amid a growing outcry in the West over blazing prices.
"The hue and cry about the level of the price is not justified as long as high taxes by the consuming governments are imposed," Iran's OPEC governor, Mr Hossein Kazempour Ardebili, said. "Prices are good," he said, adding he did not expect a shortage of crude to develop in the fourth quarter, given increases in petroleum stockpiles in the middle of the year.
Oil prices soared again yesterday, adding another dollar a barrel to a runaway market amid mounting fears of winter supply shortages in the West. International benchmark Brent crude futures for October delivery jumped $1.10 a barrel to $31.49 in opening trade. It was trading at $31.30 by mid-day.
The latest rally has again put the spotlight on the Organisation of the Petroleum Exporting Countries, which is coming under mounting pressure to authorise a production increase at a September 10th policy meeting in Vienna.
The cartel is expected to boost supply quotas by 500,000 barrels per day at that conference but traders warn that more may be needed to avoid supply problems this winter.
The administration of US President Bill Clinton is urging OPEC to raise supply and help lower prices.
