Iran refuses to raise oil output

MADRID, July 3 (UPI) -- Tehran refused to raise its oil production, putting the world energy market in turmoil amid fears any military action against Iran would impact Gulf exports.

Speaking at the 19th World Petroleum Congress in Madrid, Iranian Petroleum Minister Gholamhossein Nozari suggested there was plenty of oil in the market and an increase was not needed at this time, The Times of India reported.

"We have some spare capacity in oil production. At the same time, we have to say that there is no need for more supplies to the market. If there is going to be any need in the market, we surely are going to contribute to that," he said, adding the current market was not positive for either the oil producers or its customers.

The decision counters an earlier move by Saudi Arabia at an emergency energy summit in Jeddah where the oil giant agreed to boost production by 300,000 barrels per day.

Iran is the second-largest oil-producing nation in the Organization for Petroleum Exporting Countries. Tehran has repeatedly blamed market speculation for the rise in oil prices. It also suggested, however, that OPEC should trade oil in euros instead of the declining U.S. dollar.