TEHRAN (PIN) – Despite the fact that crude oil storage in the market has increased, due to high prices, OPEC decided in its recent meeting to keep pumping oil at current rate.

Minister of Petroleum Kazem Vaziri Hamaneh told reporters upon his return from the 140th ordinary OPEC meeting that oil price fluctuations have not exceeded 7 dollars per barrel over the past 5 weeks, adding, “During the meeting, oil demand for the second and third quarters of the year was discussed and member countries expressed concern over possible supply excess in the face of dwindling demand. However, despite Iran and Venezuela called on OPEC to reduce production, high prices prevented that.”

The minister stated that the substitute secretary general has been urged to study oil markets trend more sensitively and in case of dwindling prices, he should contact OPEC members; so that, if needed new decision could be made. He added that International Gas Forum will meet in Doha, Qatar in about one and a half months.

“During the 140th meeting it was decided that OPEC ministers may make a new decision on output, if needed, on the sidelines of Doha conference,” he said. The minister stated that there was no talk about changing secretary general of OPEC and the issue will be studied in the next meeting of Organization of Petroleum Exporting Countries. He noted that Iran’s nuclear standoff has thus far affected oil market in a negative way and pulled down prices.

“Iran is currently producing below its approved production quota. If technical problems regarding Soroush and Noruz fields are solved and the fields produce at full capacity, Iran’s oil output will catch up with its OPEC quota and we hope this will be realized in late Ordibehesht (late May),” he noted.

The minister stated that effects of any possible sanction against Iran as a result of its nuclear program on the country’s oil output should be viewed over time.

He also noted that 2.5 billion dollars allocated by the Islamic Consultative Assembly (Majlis) for gasoline imports during the next Iranian year (starting March 21), will only cover imports during the first half of the year and new decision should be made about the second half.

The oil minister expressed hope that intelligent gasoline cards would become operational in the second half of the next year.

“We can supply 70-90 liters of gasoline to every personal car in case we totally relied on domestic gasoline production,” he noted.

Asked about Iran-India gas pipeline, Hamaneh noted that Indian and Pakistani officials have indicated their interest in continuation of the project and next week’s meeting between Iran and Pakistan will pave the way for a tripartite meeting to be held later.

Regarding oil bourse, he stated that the process of establishing Iran’s oil bourse is going on smoothly and it will be opened in Kish.

As for development of Azadegan oil field, he stated that negotiations with Japanese company for developing the field are going on and a final result is expected in a week.

“If the Japanese company accepted original prices or acceded to slight changes in expenses, it would take charge of developing the field. If not, we would develop the field through domestic resources and by taking advantage of domestic contractors,” he added.

Asked whether non-OPEC producers are also trying to keep a balance between supply and demand, he noted that negotiations were carried out with non-OPEC producers on the sidelines of the 140th OPEC meeting and they expressed concern about more supply in the face of current demand.

The minister stated that Ministry of Petroleum is planning to use foreign capital for development of oil industry, but foreign exchange reserves of the Oil Stabilization Fund will be also used if needed.

He noted that Iran can be producing 4.2 million barrels per day crude oil by 2006 and every effort will be made to realize the Fourth Economic Development Plan’s goals for the Iranian oil industry.