ZURICH: World oil supply is sufficient and may even be more than sufficient despite the recent rise in oil prices, Iranian Oil Minister Gholamhossein Nozari said.
"In any case we at Opec believe that the current supply is sufficient, if not slightly too large," Nozari told Swiss daily Tages-Anzeiger in an interview.
Speculation and raffinary capacities also played a role in the spike of oil prices, Nozari said.
Opec agreed this week to increase output by 500,000 barrels per day from November 1 as oil prices hit a record of over $80 per barrel and the group has expressed concern that turmoil in world financial markets could hurt US and global economic growth, which could dent oil demand.
Nozari said that Iran had got used to the sanctions imposed by the United States.
"In the past two years, we managed to attract $37 billion of investments in our oil industry," he said.
"We have got used to the sanctions of the US. We have learned how to handle them," he said.
When asked how Iran dealt with the pressure the US was exercising on other countries to end business relations with the country Nozari said: "Let me be open: Those countries that need energy, will resolve this problem somehow."
The oil minister also said that Iran would significantly increase its daily oil production in the coming years from the currently 4.2 million barrels per day.
"Until the end of our fifth five-year plan in 2014 our production capacity should be 5.3 million barrels per day.
But despite its oil and gas resources Iran wanted to use nuclear energy, Nozari said.
"Like other countries we want to have a variety of energy resources," Nozari said.
Nozari said that Iran's restriction on petrol use was paying off and most people supported the measures.
"We will thereby be able not only to export more crude oil but also to export more refined products such as fuel," he said.
"We will increase our refinery capacities by 1 million barrel per day for this," he said.
Iran started fuel rationing in June, sparking protests by angry drivers used to cheap, abundant fuel.
Private drivers now receive 100 litres of fuel a month at the heavily subsidised price of 1,000 rials.
