Tehran to toe opec line

Tehran: Iran said yesterday it would cut oil output by 545,000 barrels per day from January 1 in line with Opec's decision to reduce production.

The Organisation of the Petroleum Exporting Countries agreed in Algeria this month to cut output by 2.2 million bpd from January 1 to try to halt the slide in crude prices that have fallen from $147 (Dh539) a barrel in July to below $40.

Some Opec delegates have in the past voiced concern about Iran's compliance with previous output curbs. Iran, Opec's second biggest producer, insists it sticks to Opec commitments.

"The Islamic Republic of Iran, starting from tomorrow, will cut its crude production by about 14 per cent," said Seifollah Jashnsaz, the head of state-owned National Iranian Oil Company, Iran's state broadcaster reported on its website. "From tomorrow the daily crude production of the Islamic Republic of Iran will be reduced by 545,000 bpd," he said.

"This action by the Islamic Republic of Iran takes place in the framework" of Opec oil ministers' decision, Jahnsaz said.