Iran sees no need for emergency OPEC meeting

Mohammad Ali Khatibi told Reuters: "No one sees any need for an emergency meeting, but if the emergency happens in the market, then it would be discussed with the OPEC president."      

At a meeting in Vienna in last week, OPEC failed to agree on an increase in production, which consuming countries wanted and which leading exporter Saudi Arabia pushed for, because other producers, including Iran, said they feared prices could tumble.

Saudi Arabia will unilaterally raise output to 10 million barrels per day in July from 8.8 million bpd in May, Saudi newspaper al-Hayat reported on Friday, as Riyadh proceeds outside official OPEC policy.       

Khatibi said the Saudi output increase was not a new thing as it did something similar in January and February, but later reduced output sharply since there was little need for its heavy crude due to restrictions in refinery capacity.     

"What they are threatening us with (an output hike), has already happened... but then they reduced it sharply. The refineries have limited capacity for Saudi's heavy crude, besides there is little demand for their oil."      

Khatibi said the market was balanced and that OPEC would act if necessary.   

"Whenever there is a disequilibrium (OPEC) tries to bring balance back to the market. At the moment the market is balanced."