MercoPress. South Atlantic News Agency

Saudis and Iran disagree over oil production.

Saudi Arabia Oil Minister Ali el Noeimi said that international crude is calling on the Organization of Petroleum Exporting Countries, OPEC, to increase its current supply of 27 million barrels per day by “another half million barrels”.

"Saudi Arabia believes that OPEC' daily extraction quota must be increased by half a million barrels per day before the coming meeting of March 16", said El Noeimi.

"Current expectations indicate that international demand in the last quarter of 2004 demand a production increase from us", added the Saudi minister who considers the current price of oil "unjustified".
"We hope to have a long debate on the issue in the coming OPEC meeting next Wednesday in the city of Isfahan in Iran".

However Saudi Arabia's position differs from that of Iran and Venezuela who favour keeping oil prices in the range of 50 US dollars per barrel, well above the 40 US dollars supported by OPEC's moderates.

Iran's Oil Minister Biyan Zanganeh pointed out Monday in Teheran that the world oil market needs a "production cut" to adjust it to global demand.

Not only a strong demand from booming economies such as China, India and United States growing dependency of foreign oil sources is pushing prices ever higher but also the growing concern with the weakening US dollar.