Business | Oil & Gas
US and Iran deny role in rising prices
Opec ministers assembled here for the 10th International Energy Forum have blamed US-Iranian tensions for the record oil prices, but the energy ministers of the two countries denied their governments were responsible for the market nervousness.
- By Barbara Bibbo', Correspondent
- Published: 00:00 April 24, 2006
Doha: Opec ministers assembled here for the 10th International Energy Forum have blamed US-Iranian tensions for the record oil prices, but the energy ministers of the two countries denied their governments were responsible for the market nervousness.
Oil prices hit a record high of $75 on Friday, raising concerns of world energy producers and consumers at a forum here about its possible impact on world economic growth and oil demand.
"Iran is not responsible for this political tension and the consequent oil price. We are continuing our production as usual and we are not going to cut oil supplies," Iranian oil minister Kazem Vaziri told Gulf News. "The price record is due to speculators who use our nuclear programme as a pretext to create fear and tension in the market. Our nuclear activity is within the Non-Proliferation Treaty and fears are unjustified."
Vaziri said production of nuclear energy is important to Iran's economic and demographic growth. With a population close to the 70 million and a growing energy demand, Iran has no other choice but to diversify its sources, he said.
"Also Russia is a key oil and gas producer, but relies on nuclear plants to produce energy. Why can we not do the same? The ratio of gas in Iran's energy mix has already reached 60 per cent and we cannot go beyond that share. We have to search for alternative sources."
US Energy Secretary Samuel Bodman said at a press conference here yesterday that the US administration was working on a diplomatic solution to the dispute over Iran's nuclear programme.
"To my knowledge there is no talk in the US administration of military action with respect to Iran. What has been said is that all options are open," he told reporters, adding the market instability had a number of structural causes including high demand from Asian countries and shortage of spare capacity.
STATUS QUO
Opec to keep output ceiling unchanged
Opec oil ministers have agreed to leave the group's 28 million barrels per day output ceiling unchanged, Venezuela's oil minister said yesterday, accepting there is little they can do to cool record high oil prices.
Venezuelan Energy and Mines Minister Rafael Ramirez was speaking after the Opec met for informal consultations during a summit of energy producers and consumers in Doha.
Saudi Arabian Oil Minister Ali Al Naimi said Opec was powerless to defuse the global tensions that were the chief cause of crude prices topping $75 a barrel, which did not reflect the demand from oil refiners.
- Reuters
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