Iran rules out raising crude output soon

"We have some spare capacity in oil production. At the same time we have to say that there is no need for more supplies to the market," Iranian Oil Minister Gholamhossein Nozari told reporters on the sidelines of the 19th World Petroleum Congress here.     

Record rates at $142 a barrel have forced countries like India to raise fuel price, which is spurting thier domestic inflation.      

India, faced with 13-year high inflation of 11.42 per cent after raising petrol and diesel prices by Rs 5 and Rs 3 a litre last month, has been seeking a hike in output by Opec to cool the crude prices.     

"If there is going to be any need in the market, we surely are going to contribute to that", Nozari said. Iran has a production capacity of 4.35 million barrels per day.     

Commenting on the current level of crude prices, he said high prices are "not good for consumers or producers. We as producers want sustainable markets".     

Nozari said high oil prices were a result of devaluation of US dollar and if it continues like this, we have no other choice but high prices.     

"I believe prices should be based on market fundamentals, he said.