As oil prices jumped again, even after the last meeting of OPEC in Vienna and the 800,000 bpd production increase agreement, adding almost another dollar a barrel to a runaway market as fears mounted of winter supply shortages in the West, especially the USA, additional attention is focusing on developments in the united OPEC front. OPEC president, Ali Rodriguez of Venezuela, shook international dealers' confidence with the statement that he blamed high taxation among consumer nations and refinery bottlenecks for soaring prices. There is no problem with crude supply. Taking up the Venezuelan theme, OPEC number two producer Iran said that it believed oil market fundamentals were sound and played down the outcry over high prices.
Prices are good and so far within the target range.
Iran's position is however under additional influence. Its OPEC policy should be related to its domestic programs and developments. The country is rushing to invest billions of dollars in surplus oil revenue to revive the stagnant economy and address chronic unemployment, officials said. All over however, economist refer to the fact that not a big cash infusion but structural reform is necessary to revive the domestic economic and social framework. As already stated, Iran is trying to boost production to 5 million bpd of crude oil and 9 billion cft.