Iran, Libya intensify opposition to increased oil production

NICOSIA -- Opponents of an increase in crude oil production are coordinating their position in advance of a meeting by OPEC in Vienna later this month.

The opponents include Algeria, Iran and Libya. They are expected to confront U.S. allies who will be lobbying for an oil production increase in an effort to stabilize prices, which now hover around $30 barrel, a nine-year high. Oil prices rose on Monday amid the statements by the opponents of oil production increase.

The three countries first met in Tripoli on Jan. 21 to draft their position. Officials said they will intensify their lobbying against an oil production increase when OPEC meet on March 27.

"Demand for crude oil has started to drop by three million barrels per day for the second quarter of the year and the Organization of Petroleum Exporting Countries will maintain the current level of output beyond March 31, 2000," the Iranian Oil Ministry said.

Iran argues that the summer months will lead to a drop in consumption and a stabilization of prices. As a result, Iran sees no reason to agree to the U.S. demand for OPEC to begin increasing oil production starting from April 1.

"The Oil Ministry said taking into consideration the market stability, the global stocks, the three million barrels per day drop in crude oil demand in the second quarter of the year, and the economic growth of the developing and the industrial nations, there will remain no concern about the level of crude oil prices," the official Islamic Republic News Agency said.