May 19, 2002	Sunday	Rabi-ul-Awwal 6, 1423

TEHRAN, May 18: Iranian Oil Minister Bijan Zanganeh said on Saturday he saw no reason for Opec to raise crude output at its meeting in Vienna in June.

In the present atmosphere and situation, I don’t see any ground for raising output in June, he told Reuters.

Zanganeh joins several oil ministers from Opec member countries who have indicated the cartel was not planning to raise production quotas in response to strong oil prices at its June 26 ministers’ meeting in Vienna.

Zanganeh reacted angrily to news that Russia, the world’s second biggest oil exporter, said it would abandon a deal with Opec on export cuts and return to full capacity because rising oil prices no longer need its support.

Russia never cooperated with Opec, it was just talk and the market never believed in Russian cooperation with OPEC,” he told reporters.

Russia’s Prime Minister Mikhail Kasyanov told reporters on Friday Moscow planned to bring its exports to pre-cut levels by the time the arrangement with Opec expires at the end of June.

Analysts and traders said the decision was a pure formality because after trying to keep a lid on exports in the first two months of this year, Russia ignored the deal in March and shipped record volumes.

July North Sea Brent crude dipped below $26 a barrel on Friday before recovering to $26.51 a barrel in late US activity. NYMEX June delivery crude rose 23 cents to $28.18.

Russia, the world’s second-larget oil exporter after Saudi Arabia, joined non-Opec producers Norway and Mexico in agreeing to cut exports by about five per cent in January-June to help the Opec cartel — which also cut production — prop up oil prices.

Opec ministers meet on June 26 in Vienna to review production policy for the third quarter.

Opec targets a range of $22 to $28 for its basket of seven crudes, normally valued at about a dollar discount to North Sea Brent and about $2 below US light crude.

Zanganeh also denied reports that the oil ministry had submitted a shortlist of candidates to the Iranian president for nomination to the post of secretary-general of Opec.

It’s a rumour I have heard, but I don’t know where it came from, he said.

The minister this week denied his country had nominated Iran’s Opec Governor Hossein Kazempour Ardebili, to replace Venezuelan incumbent Ali Rodriguez who is due to leave the job at the end of June.

Asked if Iran would nominate anyone for the post, Zanganeh said: We are still reviewing it, I don’t reject it, it’s possible.—Reuters